Oil prices remained relatively stable in the past few days as WTI oil price has been trading around $93-$94 and Brent oil at $97-$99. United States Oil (NYSEARCA:USO) is also relatively stable at $34-$35. Looking forward, the latest updates from OPEC and International Energy Agency provide some additional information regarding the progress in the global oil market.
In the past few weeks, Brent oil has underperformed WTI oil. Since the beginning of August, the price of Brent oil fell by close to 9% while WTI oil by nearly 6%. This is why the current spread between Brent and WTI fell to its lowest level of $3-$5.
Source of data EIA
It's still too early to determine if this spread were to remain at this low level of bounce back. Moreover, the recent news from the IEA states the demand for oil in Europe and China is expected to be lower
By Sumit Roy
Investors use the pullback in precious metals prices as an opportunity to buy.
Fund Flows Data (Sept. 5 - 11, 2014):
Commodity ETF Weekly Flows By Sector
Top 5 Commodity ETF Creations
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Oil/petroleum is the single most traded commodity on our planet. As some derivative of oil can be found in nearly all products of daily life, it is hardly possible to exaggerate the importance of oil for our civilization.
Not all enterprises that are called "oil companies" actually produce oil. The oil and gas industry is commonly divided into three parts: upstream, midstream and downstream. Only the upstream industry (also called E&P - exploration and production) produces oil. Midstream is active in transportation and downstream is involved in refining of crude oil. Most companies are involved in more than one of these sectors.
Companies active in upstream can be roughly divided into two groups: NOCs and IOCs.
IOC stands for International Oil Company. Here one can find well-known names like ExxonMobil, Shell or BP. The operations of these companies are not confined to a particular region, so they produce a