Oil prices keep their ordinary bearish routine breaking the last barricade of $31/bbl. before reaching an important $30 level. WTIplunged as low as $30.41 currently hovering in a range of $30.50 – $30.60. In only 10 days, the commodity lost about 20% and rock bottom seems not somewhere near current levels, analysts say.
Brent futures also crashed to a $30.62 level, which it the lowest since April 2004.
According to the latest CFTC report, the disparity between bearish and bullish bets on the commodity increased to 5-year high with bearish bets prevailing. Major world banks like Barclays, Macquarie, Bank of America Merrill Lynch, Standard Chartered and Society Generale reduced forecast on Oil price in 2016.
In 2016, Barclays expects an average WTI price at the level of 37$/bbl. comparing to the last forecast of $56$/bbl. Standard Chartered released the most pessimistic outlook: according to its analysts, the prices may drop to $10/bbl.
The US indices are still depressed with no signs for upturn as the performance of Chinese economy is insufficient and low Oil prices pull the US Oil and pipeline companies down: DJIA -0.17%, S&P 500 -0.16%, FTSE 100 +0.36%.
Chinese index Shanghai Composite is in a moderate gain today (+0.2%) as Chinese government managed to maintain Yuan exchange rate ramping up interventions.Publication source