FXstreet.com (Córdoba) - Oil prices have come under massive pressure this week, with Brent falling by nearly $10 to a 6-week low of just under $108 per barrel and WTI hitting levels below $91/bbl. According to Barbara Lambrecht, analyst at Commerzbank even though lower prices would be fundamentally justified given the currently comfortable supply situation, "we believe the extent and speed of the recent price slide was exaggerated".
Hence in the analyst view, oil prices look set to pare some of their accumulated losses in the next few days. "A countermovement in US crude oil inventories following the strong build-up in the previous week could be conducive to a price rally", she says. "In contrast, the first estimates for OPEC production in September may have a negative impact on the price because it is to be assumed that Saudi Arabia will keep the oil pump wide open".
Hence in the analyst view, oil prices look set to pare some of their accumulated losses in the next few days. "A countermovement in US crude oil inventories following the strong build-up in the previous week could be conducive to a price rally", she says. "In contrast, the first estimates for OPEC production in September may have a negative impact on the price because it is to be assumed that Saudi Arabia will keep the oil pump wide open".
