Saturday, August 15, 2015

A Weaker Chinese Yuan was Putting Downward Pressure on All Commodity Markets, Especially Oil Prices

Yuan devaluation hitting Oil prices, Petromatrix oil analyst Olivier Jakob said WTI could fall further, but Brent was in a consolidation phase: "WTI is still facing some local issues and it could weaken more. Otherwise Brent will start to stabilize." slowly but surely going to stable.

Meanwhile Citi Group revised down its base case crude oil price outlook to $54 per barrel for Brent in 2015 and $53 in 2016. It cut its U.S. crude outlook to $48 for 2015 and 2016.

Another opinion from Goldman Sachs said a weaker Chinese yuan was putting downward pressure on all commodity markets, signaling a change in global macroeconomic conditions.

"We believe the net commodity market effects are bearish," it said in a note to clients.

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