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  
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...


US dollar rally about to end?

The US dollar has certainly been the success story of this year gaining strongly against all assets classes including gold with global tensions and higher...

US dollar will overcome Trump

After rallying for most of the year against the major currencies the US dollar seems to have stalled over the last week and according to some...

Pound may hit post Brexit levels

The British pound has now had its worse run since the global financial crisis and according to some analysts the pain may be far from over...


Higher inflation may benefit gold

Higher inflation in the US usually translates to rising interest rates which is usually negative for gold, as higher rates mean bigger yields which tends to leave...

Pound to fall as rates stay on hold

With all the uncertainty surrounding the UK at the moment such as political instability as well as the current Brexit negotiations that seem...

Oil at more than $150?

With the introduction of sanctions against Iran as well as a reduction in the development in new oil infrastructure, the chances for the highest oil prices in a decade is growing by the day...

  


Share: