Oil market overview

Oil market overview

2019-11-11 • Updated

Oil prices recovered some losses at the start of the week, rebounding from a 3% fall in the previous session amid a stronger USD and oversupply worries.

The number of active US oil rigs increased by 7 bringing the total count to 763 rigs this week, according to data published by Baker Hughes on Friday. The data contradicted investors’ expectations of the continued rig count fall, after the previous week decline (the first one from January).

The rising activity of the US oil industry comes as OPEC’s supplies remain ample despite the group’s commitment to cut output by the end of March 2018. OPEC exported around 26 million barrels per day in last month which 450000 barrels per day more than in May despite the extension of the OPEC’s output cut deal.

Additional drag was upbeat nonfarm payrolls data from the US that triggered USD buying.

This week modest rebound in oil prices was a reflection of opportunistic buying after the Friday’s downfall. Another boost was the news about the OPEC’s intention to cap unlimited supply of oil from Nigeria and Libya pumping industries. Up to day, they were exempt from OPEC’s production cut agreement due to their internal turbulences. After the appeasement, their production capacities have improved. Libya’s crude oil output has surged to more than one million barrels a day, up from 400 thousand in October, while Nigeria’s output has risen to 1.6 million barrels a day, up from 200,000 barrels a day in October.

These are significant increases. Nobody argues with that. Nevertheless, the main concern of investors is rising US oil output. The US Energy Information Administration said the US output has increased to almost 9.34 million barrels per day last week dragging oil prices downwards (the earlier rally had started due to US oil production’s downfall).

The African produced were invited to participate at the OPEC-non-OPEC meeting on July 24 in Saint-Petersburg to discuss the levels and stability of their production. If Libya and Nigeria manage to stabilize their oil production at today’s levels, they will be asked to decrease it as soon as possible. The other participants of production cut agreement won’t be demanded additional sacrifices. Mohammad Barkindo, Secretary General of OPEC, told media in Istanbul before the World Petroleum Congress (July 9-13) that OPEC/non-OPEC ministerial committee are not going to discuss the possibility of further cuts.

In the short-term, the oil prices will continue to fluctuate under the influence of the data reflecting the performance of the US oil industry (weekly crude inventory estimates coming on Wednesday, and Friday’s Baker Hughes rig count). As we approach the OPEC/non-OPEC meeting the focus will be on the participants’ decision to curb or not curb the African countries’ production, to discuss the prolongation of the output cut deal or leave this question open.

At the time of writing, Brent oil futures are trading at $46.75 well below the psychologically important level of $50. They added some gains in Tokyo morning, then lost their zest as the European session commenced.  WTI futures are down to $44.23 from today’s opening price of $44.52


Oil Market Outlook
Oil Market Outlook

Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.

China’s rebound and energy prices
China’s rebound and energy prices

China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?

Latest news

Gold and the Majors ahead of the NFP
Gold and the Majors ahead of the NFP

Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.

The Oil Market in the Month of June
The Oil Market in the Month of June

Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.

Gold’s Next Move Could Be Huge!
Gold’s Next Move Could Be Huge!

Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera