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  
Gold may be a good bet in the new year

The gold price jumped to a 3-week high in early trading today, taking its gains to over $40 in less than 2 weeks and with the market expected to remain...

Tax reform not to benefit US dollar

The US dollar has remained under pressure in the last 3 trading sessions which is strange inlight of Donald Trumps tax plan which is certain...

Tough times ahead for pound

The British pound is trading higher today after as the EU and the UK move onto the 2nd round of talks surrounding Brexit which promises...


Gold awaits US employment data

The gold price is under further pressure today after being hammered over the last week and as we mentioned yesterday, any sustained break down...

Gold ready for breakout to the upside

The gold price has certainly behaved strangely this week, failing to react to news which would usually send the precious metal considerably higher...

Pound set to rally

The British pound continues to rise today against its US counterpart after rumors surfaced yesterday that the UK has reached a settlement to leave the European union...


Gold awaits news on tax reform

The gold price is making another run for the $1,300 mark in today’s trading session on the back of US dollar weakness and as the market...

Gold takes a breather, comeback predicted

The gold price has drifted slightly lower for the 2nd day in a row on the back of profit taking as the US as the US celebrates thanks giving...

Gold looks to tax reforms

The gold price is slightly lower in today’s European trading session although it is still hovering around 1 month highs as fears grow that US President...

  


Share: