Oil under pressure until mid 2017

September 15, 2016

The oil price has stabilized today after falling more than 3 percent yesterday TheВ International Energy AgencyВ warned of a global oversupply in the market well into next year.

The IEA which advises oil-consuming countries on their energy policies noted that rising supplies along with a sharp reduction in demand will cause a glut of oil in the market at least until June 2017 which is in sharp contrast to last month’s forecast where the agency noted that supply would fall by the end of the year.

"It seems the situation has deteriorated strongly in the eyes of OPEC as well as the IEA," said Commerzbank head of commodities strategy Eugen Weinberg.

"I wouldn't be surprised to see this price weakness continue for a while right now, because that was not on the cards, in our opinion." He added.

As oil prices remain under pressure some are predicting that the rumours of a production freeze by Opec are all hot air as a potential raise in interest rates by the US Federal Reserve this year is also expected to pressure the commodity,

"The idea of an oil production freeze makes even less sense if demand falls apart while U.S. monetary stimulus is being removed at the same time," said David Thompson, executive vice-president at Powerhouse, a commodities-focused brokerage in Washington.

Publication source
FIBO Group information  FIBO Group reviews

February 20, 2017
What is the next target for the UK?
The dramatical event looms large for Pound, which can sweep the British currency off its feet – the official exit from the EU. The Prime Minister Theresa May said that the process can be initiated as close as possible to the EU summit in Brussels, scheduled to take place on 9-10 March...
February 20, 2017
Gold remained around its recent peaks
Despite the overall positive outlook the yellow metal seems to be having problems with its further advance. Inability to move higher may return some selling pressure to markets. Sellers’ profit targets lie at 1230 and 1220 levels...
February 17, 2017
NZD looks to weaken
The New Zealand dollar has found itself under pressure in recent days as the market has started to hedge a little while it waits on the next steps for the US economy...

Tickmill Rating
Fort Financial Services Rating
Vantage FX Rating
FxPro Rating
OANDA Rating
FX Giants Rating

OptionRally Rating
Migesco Rating
OptionFair Rating
OptionBit Rating
Empire Option Rating
365BinaryOption Rating