5 reasons oil is heading to new tipping point
This is an excellent article about why we may hit low points in the price of oil again. The supply continues to out-pace the demand even before sanctions are fully lifted from Iran. There is no question that Iran will raise the saturation of oil supply. The only unknown is by how much.
Storage of oil and refined products are also close to full. U.S. shale oil did not roll over as the Saudis expected, and output is still very strong. The World Bank sees an average barrel of oil price at $51 in 2016. Even Barclay's optimistic outlook has oil only at $63 in the 4th quarter of 2016. So, holding oil stocks for the next year may be a losing investment.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment