Window For An Oil Correction Is Closing
MarketPulse | May 11, 2015 08:14AM ET
The chances of another sharp fall in the price of oil is rapidly receding, according to a notable European commodity analyst, who expects a period of stability in the second half of the year.
Get The News You Want
Get The News You Want
“The simple fact of the matter is that the window for a correction will be closing in the coming few weeks,” Michael Wittner, global head of oil research at Societe Generale, said in a note released Monday morning.
Get The News You Want
Get The News You Want
He highlighted a number of reasons why prices could stabilize over the next six months, including the fact that it comes after the March-to-May quarter, which is traditionally when global crude oil supplies are built up.
Get The News You Want
Get The News You Want
Crude stockpiles – which indicate a glut in supply – would also be reduced, Wittner highlighted, as the winding down of refinery maintenance in Europe and Asia means more oil will get processed.
Get The News You Want
Get The News You Want
U.S. refineries are also expected to step up a gear and further reduce stockpiles, and Wittner said he expects months of declining U.S. crude production to further buoy prices.
Get The News You Want
Get The News You Want
For Brent, Societe Generale (PARIS:SOGN) sees an average price of $60 a barrel in the third quarter of 2014 and then a rise to $65 a barrel in the fourth quarter. The French bank predicts that WTI will track that price, trading at $55 a barrel before rising to $59 a barrel in the last quarter of 2014.
Get The News You Want
Get The News You Want
But the bank’s analysts forecast a dip in the price of oil in 2016, as a pickup in U.S. shale spending, drilling, and well completions weigh on prices.
Get The News You Want
Get The News You Want
Brent crude futures traded flat Monday at around $65.40 a barrel, and U.S. WTI crude was also flat for the session at $59.37. This comes after strong gains last week for the commodity.
Get The News You Want
Original post
Get The News You Want
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.