Crude oil: price may fall further near term - Danske Bank
|According to analysts from Danske Bank, supply and demand dynamics suggests that the price of crude oil may fall further near term.
Key Quotes:
“The oil price grabbed the headlines again this week, reaching the lowest level since November last year. As usual, there is lot of attention on oil supply stories with increasing production out of Libya catching the headlines.”
“We have yet to see a significant cut in the number of US rig counts, while US oil production appears to be topping out. From the supply side there is hence nothing to suggest that the oil price should stabilise just yet. Moreover, the oil price is in our view primarily reacting to slowing global demand, particularly in China and the US. The speculative community is still long oil according to IMM data. We could see the oil price fall further in coming weeks.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.