Tag Archives: oil

Oil Prices Fall as Federal Reserve Indicate a Hike in Short-Term Interest Rates

oil prices 1

With a stronger US dollar and a fading possibility of a freeze on production, oil prices fell sharply. Crude oil for October delivery on the New York Mercantile Exchange slumped 76 cents, or 1.6%, to trade at $46.88 a barrel. Meanwhile, on the ICE Futures Exchange in London, Brent oil for November delivery declined 79 cents, or 1.58%, to trade at $49.36 a barrel. Oil prices fell after Federal Reserve signalled a growing conviction that the central bank would raise short-term interest rates in the weeks or months ahead. Any rise in U.S. interest rates usually doesn’t bode well for oil prices, which are priced in dollars. Higher interest rates could push the dollar higher, making oil products more expensive for oil traders who hold a different currency. There is a continued speculation over whether major oil producers, including Russia and members of the Organization of the Petroleum Exporting Countries, will agree to limit output. Any consensus reached when officials meet in Algeria in late September would give the market a long-term boost. However, chances of the OPEC members arriving at a consensus was remote as Iran said it would only cooperate in talks to freeze output if fellow exporters recognized its right to fully regain market share.

Read more: http://www.researz.com/oil-prices-fall-federal-reserve-indicate-hike-short-term-interest-rates

Russia to Partially Privatize Rosneft, Aiming to Raise US$11 Billion

Rosneft office

As part of the economic development plan for 2016, the Russian government is planning to partially privatize its flagship oil producer, Rosneft. Russia is hoping to get more than US$11 billion from the sale of a minority stake of Rosneft before the end of the year. This will help plug financial deficits in the Russian economy caused due to low crude prices. However, sanctions imposed on Moscow over its actions in Ukraine and the cautious approach of investors in investing money in Russia can prove to be detrimental for the Russian market. Added to this is the volatile nature of the commodity market. Rosneft is hoping to repeat the success it had a decade ago, when it managed to raise US$11 billion from its initial share offering.

Read more: http://www.researz.com/russia-partially-privatize-rosneft-aiming-raise-us11-billion