Oil price forecast 2017

http://illuminatisilver.com http://facebook.com/illuminatisilver Oil price forecast 2017 Today is Wednesday 28th December 2016 and we are briefly commenting on the forces likely to affect oil prices in 2017. As we reported recently and which is now common knowledge, the world has faced an oil glut mainly caused by OPEC having no agreements on output and the considerable amount of oil produced by US Shale Oil Producers all of which has caused Brent crude oil prices to fall from over $115 per barrel in June 2014 down to $27 a barrel in Jan 2016 and are now standing at $55 a barrel after this month’s OPEC/NonOPEC production agreement. The question many people are asking is where are prices likely to go from here and what will influence them? Well the answer is, that it all depends upon whether OPEC and Non OPEC countries stick to their agreements or not. On 30th November OPEC members agreed to cut oil production by 1.2 million barrels a day. On the 10th December Non OPEC oil producing countries in discussion with OPEC Members, agreed to cut production by 600,000 barrels a day. Analysts believe that if these cuts go ahead as planned from January 2017, then we should see an eradication of the surplus supply much of which is currently stored in super-tankers; 40 of which are sitting off Singapore's coast or in nearby Malaysian waters. If this occurs, we could very well see oil prices rise to $70 - $75 a barrel. However there are a number of factors which suggest that the Agreement may not hold: • Iraq for example may need to increase funds to pay for the cost of its war with ISIS • Iran, which has been subjected to severe trade embargos will be looking to earn as much revenue as possible to reflate its economy • US Shale Oil producers which have cut back production because of the low price may increase production again as prices continue to rise. In addition we should also not forget that China’s economy has for many years been the second largest oil consumer in the world following the US. If its economy falters in 2017 then this is likely to have a considerable impact on prices too. Finally we must not forget President-elect Trump’s policies, which at this moment we have little idea as to how they will affect oil prices until they are announced. It goes without saying that the value of the dollar also determines price per barrel as oil is still predominantly purchased in US dollars. We are assuming for 2017 that continued dollar strength will to some degree maintain the status quo as far as its effect on oil prices are concerned. Our view and best estimate at this stage, is that production limits will be adhered to for at least a few months but we are quite frankly not too optimistic about them holding throughout the entire year. Yes oil seems to be reasonably pegged at $50 and could rise to mid $60’s. Much beyond that we doubt unless of course there is some International crisis or an increase in conflict in war torn areas of the world. So to conclude, subject to the proverbial black swan turning up, we shall see oil prices throughout 2017 vacillating between $40 - $65 in the main. Please view our recent videos: UK Investors follow US Investors into the Stock Markets https://youtu.be/AwC8JzSHW2U Musings on the Future Direction of US Stock Markets in 2017 https://youtu.be/4_u-5HT7SsQ Bitcoin – An Introduction as its value doubles in 2016 https://youtu.be/XFA0j5fxPu4 Gold and Silver Update w/e 23rd December 2016 https://youtu.be/_wpwXIoiq9c Christmas Gold/Silver Pumpers Poem https://youtu.be/A1yhWb-vMKM Deutsche Bank agrees to pay US Authorities $7.2bn – Financial opportunity missed? https://youtu.be/WMui_eTyyOU China’s Central Bank Adds No Gold to Reserves in November https://youtu.be/XbDL83IroYc Bloomberg is negative on Gold and they may have good reason. https://youtu.be/7U3Y-Yn-jZ4 Goldman Sachs Pays $120 million fine for alleged rate fixing https://youtu.be/GoaH5bvYduU Too Big to Fail has become that little bit smaller. https://youtu.be/_gyCgt-ttTs World's oldest bank Banca Monte dei Paschi could run out of money soon https://youtu.be/XyNsPibg_UU Lagarde found guilty of negligence but is allowed to go Free https://youtu.be/9502GWBIvxE Why the Dollar won’t collapse on 31st December 2016 - Guaranteed https://youtu.be/XX4AHkvwHXM The various Uses of Silver Series - Jewellery https://youtu.be/y1y0GWlcs6U Why Foreign Currency Reserves Are Important – A Beginners Guide https://youtu.be/xjPlrI6AH7s Gold and Silver Update w/e 16th December 2016 https://youtu.be/ulTkoUYUoFA Ignore the Dollar Collapse Fear Mongering – Rants Illuminati Silver https://youtu.be/5iOG7-_vvF0 Gold nanotechnology and AMD - Blindness https://youtu.be/jNry9Q8aaQs Fed raises Rates - More to Come - Gold and Silver prices fall https://youtu.be/3NMz7kZf4eA Oil prices Jump 6% – Good News for Gold and Silver prices https://youtu.be/yEPyvytaV5Y