Gloomy outlook for oil price

26 July, 2016

The price of oil continued to fall again today as expectations surfaced on more drilling activites from the US as well as a general oversupply of petroleum products on the market.

WTI is currently trading at US$42.69c while Brent crude oil is sitting around US$44.76c.

"Supply continues to return from disruptions, refined products are severely oversupplied, crude demand is falling well short of product demand, and key product demand is decelerating," noted analysts from Morgan Stanley

Predicting more downside are analysts at JBC Energy who noted that there are more pessimists than optimists at the moment when it comes to the direction of the oil price and we may yet see some further falls,

"Inputs on the speculative side are certainly more bearish than bullish. Crude fundamentals could certainly be used to make a case that there is some more downside to prices yet to be flushed out." they said

Improved economic data out of America has raised expectations of an imminent rate hike from the US Federal Reserve which is also weighing on the oil price as a higher greenback tends to put pressure on dollar priced commodities as they become more expensive for holders of other currencies.


Source link  
D-Day for the pound

Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them...

Will gold's rally continue?

After spending the majority of November range bound, the gold price has finally broken out to the upside as investors seek out safe havens from the anticipated...

Dollar could weaken for years

The US dollar has been the star performer in the currency markets this year, gaining solidly against all the major currency but some are beginning...


Gold may finally Breakout

Gold is now on track to rack up its 5th straight day of gains on the back of geo political factors as well as expectations the US Federal Reserve may...

Will gold continue rally?

For more than 2 weeks now, the gold price has been on a steady uptrend after volatility in world stock markets, and in particular, the US market which...

Pound may be headed for parity

The market had been expecting such a move so all eyes were on the following monetary statement for signs of the US central bank's future moves...


Fewer rate hikes may support gold

The Gold price has continued to rally today after yesterday's release of consumer price index figures from the US threw into doubt the ability for the US...

More rate hikes may boost pound

The British pound has been well supported over the last few days as speculation that a rebellion within against Prime Minister May's conservative party...

Oil rises on lower US reserves

The oil prices is trading higher in today's trading session, following on from yesterday solid gains after a fall in US crude oil inventories and the...

  


Share: