Oil: Demand concerns stand in the way of a further price increase – Commerzbank
|The price of a barrel of Brent Oil rose to a good $90 at the beginning of September. Strategists at Commerzbank analyze Oil’s outlook.
Limited upside potential for the price of Crude Oil in the short term
The Oil market should be significantly undersupplied in the second half of the year and inventories should continue to fall appreciably in the coming months.
Demand concerns stand in the way of a further price increase. For example, the economic recovery in China has noticeably lost momentum, so Oil demand should rise more slowly from now on. Oil demand in the US and Europe is likely to be curbed by the expected recession.
We see only limited upside potential for the price of Crude Oil in the short term and a price level of $85 per barrel at the end of the year.
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.