Oil’s dire performance since the start of the new year continued on Tuesday as prices of benchmark Brent crude and US marker West Texas Intermediate flirted with $30 a barrel. Concerns about China’s economy, whose growth led a surge in global oil demand over the past decade, together with still robust US production and a jump in output from Opec producers has taken prices to levels last seen more than a decade ago.
But where do prices go from here? The Bear Case — Ed Morse, global head of commodities research at Citigroup: “It would take an unusual series of supply disruptions to change this course of price behaviour. In the short-run the market outlook for oil is fairly bleak...............................................Full Article: Source
|