Oil prices were on a tear this week, riding a wave of strong supply-demand fundamentals and lingering geopolitical fears. All that the handful of OPEC and non-OPEC ministers gathering in the Saudi coastal city of Jeddah had to do was get out of the way, which they did
Front-month ICE Brent futures scaled a new 40-month peak to settle at $73.78 Thursday, while WTI had notched a high of $68.47 the previous day. Even the sour benchmark, Dubai, which trades at a discount to sweet crude, finished the week above the $70 psychological level, for the first time since 2014.
Shortly after oil bulls took cheer from the absence of any dovish signals from the six-member OPEC/non-OPEC Joint Ministerial Monitoring Committee meeting in Jeddah Friday, US President Donald Trump threw a wet blanket on them. “With record amounts of oil all over the place”, OPEC was keeping prices “artificially high”, he tweeted, adding that it “will not be accepted.”
Brent, which had briefly vaulted over $74/barrel after the JMMC, was back in the red compared with its Thursday’s settle. But it is hard to see what Trump could do to “not accept” the high prices (assuming he doesn’t agree with the free ride the US shale producers are getting due to the OPEC/non-OPEC cuts and hasn’t changed his mind about walking away from the Iran nuclear deal). US imposting tariffs on crude imports won’t serve the purpose and sanctions against 21 countries (Russia, Venezuela and Iran are already in that list) would probably have the opposite of the desired effect.
Irrespective of whether crude settles higher or lower on the day Friday, the Trump dampener is likely to be transitory, with fundamentals soon returning to the driver’s seat in oil. This week was relatively quiet on the geopolitical front, but all it needed was an across-the-board draw in US commercial oil stocks being reported for the previous week, for crude to resume its ascent.
Saudi Energy Minister Khalid al-Falih told the media in Jeddah that he believed OPEC and its allies should persist with their production cuts because OECD oil inventories are significantly above levels before 2014, when the world was hit by a wave of oversupply. Importantly, Russian Energy Minister Alexander Novak, also in Jeddah for the JMMC meeting, concurred with AlFalih’s assessment.
Any revision to the OPEC/non-OPEC producers’ current goal of draining the inventories to their five-year average is to be discussed at the June 22 ministerial meeting. Some ministers have suggested in recent months that the target be tightened to a seven-year average, which would mean continued production restraints to mop up more more barrels from storage.
The long-term Saudi-Russian collaboration, discussed between the respective ministers in Jeddah, is work in progress.
OPEC and its Saudi leadership have turned distinctly hawkish of late and the outcome of the Jeddah meeting should lay any doubts on that count to rest.
We now expect OPEC to move its inventory goalpost at the June meeting and telegraph that to the market in the intervening weeks. That sets the stage for rolling over the cuts beyond December. The only spanner in the works could be the May 12 US decision on Iran sanctions. If it produces a crude spike to $80 or beyond and appears set to crimp Iran supplies, OPEC will have to go back to the drawing board.
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Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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