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.Publication source