US producers increase their oil production

The US oil producers is clearly the most satisfied group of high oil prices. The cost of raw materials declined on Friday after it became clear that OPEC and Russia could increase their production. And the latter may be the result of US production growth in an environment of rising production.
US crude oil lost about 1 percent of its value to $66.39 a barrel late Friday, while the Brent fell 0.6 percent to $77.07 and was already more than $3 below its highest since late May.
US oil production is growing at a good pace and weekly data show no signs of slowing down, according to Seaport Global analysts, adding that growth is mainly driven by Texas and New Mexico.
US oil production rose 215,000 barrels per day to 10.47 million barrels per day in March, according to the US energy ministry. Production in Texas rose 4% to 4.2 million barrels per day, while that in New Mexico - by 6.5% on a monthly basis.
Increasing production by US companies in the US is a reality when the market increasingly talks about Russia and OPEC being able to override accepted production constraints. Namely the latter were the basis of the strong rise in oil prices to a maximum of four and a half years.

Oil loses more than $4 on Friday, continues to go down

The price of oil continued with its exceptionally strong depreciation on Friday and the first day of the new week. Brent futures with delivery next month lost $1.1, or 1.4% on Friday's closing level.
US crude oil fell by 1.57 dollars, or 2.3% on Friday's closing level.
Brent and US oil fell respectively by 6.4 and 9 percent of its peak in early May. In China, oil fell 4.5 percent to 459 yuan a barrel (71.83 dollars a barrel).
The rise in oil prices in recent weeks has sparked serious debates among market participants and OPEC members about the impact of oil prices on the world economy, according Chittag Ay, chief economist at Morgan Stanley.
On Friday, Saudi Arabia and Russia, which are considered to be drivers of the oil market, said some oil production growth of 1 million barrels per day was under discussion.
Production cuts were the factor that led to substantial oil prices on international markets.
With the price rise, however, the US producer of US oil is also growing, benefiting from the high oil price.
Oil prices have collapsed after reports that Saudi Arabia and Russia have agreed to increase their production in the second half of the year, ANZ said.
US energy companies have added 15 new field deposits for the week to May 25.

Demand for gold rose after the political events in the US

Political developments in the US since the end of last week have prompted investors to raise demand for "rescue assets".
The gold has taken advantage of the situation and has appreciated. The noble metal added 1% of its value to levels above $1,290 per ounce.
More and more experts are beginning to talk about testing a psychological limit of $1,300. The last level has been limiting the growth of the metal over the past few months. If level will overcome, however, we can very quickly see a further appreciation for the yellow metal to $1,350, and later to $1,400.
The rise became a fact after former Donald Trump's security advisor Michael Flynn said he was ready to testify about unlawful ties between Trump and Russia.
The report raised fears that Trump may soon not be the president of the United States, leading to serious political and economic shocks.

Oil rally may be short-term?

Another good week for oil after the OPEC Secretary predicted global oil consumption growth to over 100 million barrels per day by 2020. Mohamed Barkindo's statement was widely welcomed by oil investors.
Investors are now beginning to ask - is the oil rally justified and how far could the price of black gold go?
The market knows that OPEC's positive comments and forecasts often are rapidly being overcomed. Especially in cases where net long positions of investors rise to high levels, as currently the case is.
Investors are aware that any forecasts coming from OPEC should be taken with a great portion of mistrust. In the end, they come from a party that is interested in a high oil price and can be manipulated.
Some experts start to worry that the price of oil has risen too much and too fast. Not only the planned repairs of US refineries expected to bring downward pressure on raw material prices, but also the number of shale growers is rising as a result of the rise in oil prices.
Oil demand from China may also fall below expectations, which is another factor to lower the price of oil.
On the other hand, the unprecedented warming of relations between Russia and Opec may be a factor that will continue to support the cost of the raw material. What will happen from now on is yet to be seen.

Citi: Trump's impeachment risks have risen

For investors, President Trump's impeachment option seems unlikely. Citi Bank, however, warns that the likelihood of this has risen.
The comments from the banks became reality after Donald Trump Jr., tweeted emails detailing his greetings, after sources identified as related to the Russian government have disclosed compromising emails to President-elect candidate Hillary Clinton.
Markets have reacted negatively to this information, with the Dow Jones Industrial Average index losing 129 points of its value immediately before recovering all its losses.
Impeachment is unlikely given the complexity of this process and the lack of sufficient evidence of a "serious crime," according to Citi analysts.
The bank also commented that such a solution would require serious political pressure, and Republicans who control Congress at the moment would hardly allow this to happen.
On the other hand, and despite many unknowns in Trump-Russia relations, Citi analysts believe that the risk of impeachment for the US president is now higher than before, although this is still not a baseline scenario.