Since OPEC and other oil producing nations agreed to cut output, Brent crude oil has kept an average bull to some extent moving along the hopes shared by those nations. This impression, however, has been fading increasingly till it perished on Wednesday when Brent closed at its lowest level since then.
Nevertheless, some traders and hedgers are counting on future rebound till $80 a barrel by the end 2017, drawing conclusions from the actual growing tensions in Middle East and South Africa. Coordinately, Saudi Arabia, the most forceful OPEC nation, and some other oil exporting states declared cutting all political and economic ties with Qatar, the other effective OPEC member; a demarche that may push up the oil price.
Also, at the other side of Mediterranean sea, the conflict is getting harsher in Libya, moreover, the workers’ protests led to unwanted cutoff of Sharara oil field which had been pumping 270,000 barrels a day.
The terrorist assaults in Iran on Wednesday also were shocking, as such terrorist strikes occurred for the first time in Tehran since the organization of Daesh. Iran and its regional foe, Saudi Arabia, have always interchanged accusations of supporting the swelling terrorism in the region, the issue that has aggravated the hostility between these two main OPEC members until it reached the entire cut. As a result of the recent terrorist assaults in Tehran and the accusations aimed to Saudi Arabia, the conflict between the two nations is going to be more intensified.
In the other hand, U.S. stockpile numbers provoked further Sell on Wednesday due to their increase up to 3.3 million barrels rather than the assumed decrease. Traders are expecting bearing numbers of U.S. stockpile deeply under 3 million barrels by the end of 2017, which will help creating bullish trend for oil price.