Oil Prices Fell down more lower, Oil prices have been on a rollercoaster ride over the last year. According to Goldman Sachs, West Texas Intermediate (WTI) oil tumbled late in 2014 from over $100 (£64.78) per barrel to just around $45 per barrel early this year. What a great depreciation
Somehow, After a recovery back to around $60 per barrel during the early summer, prices have gone through the floor again, down to $45.12 again today, oil is no longer as a Safe Haven commodity, the bad news is it could go even lower.
The oil prices trends is extraordinary, note from Goldman Sachs, The price of a barrel of oil could go to just $20 soon, according to Goldman Sachs analysts led by global commodities research chief Jeffrey Currie. It's crazy for the next couple years, economic slowdown seems need more time to getting awake, There's a huge surplus of oil in the world, put down to both buoyant supply and weaker demand, as long as global economy slower growth, yes it could be damage the commodities prices, and that could leave prices at levels not seen in decades. Here's a snippet from Goldman's latest note on oil:
The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 on further OPEC production growth, resilient non-OPEC supply and slowing demand growth, with risks skewed to even weaker demand given China's slowdown and its negative EM feedback loop... While not our base case, the potential for oil prices to fall to such levels, which we estimate near $20/bbl, is becoming greater as storage continues to fill.
That's the level oil was at for most of the 1990s — though of course, $20 then was worth more than $20 now. Oh no, it's a bad signal for oil industry, more depreciation on stocks market for oil companies shares
Source : Goldman Sachs
Somehow, After a recovery back to around $60 per barrel during the early summer, prices have gone through the floor again, down to $45.12 again today, oil is no longer as a Safe Haven commodity, the bad news is it could go even lower.
The oil prices trends is extraordinary, note from Goldman Sachs, The price of a barrel of oil could go to just $20 soon, according to Goldman Sachs analysts led by global commodities research chief Jeffrey Currie. It's crazy for the next couple years, economic slowdown seems need more time to getting awake, There's a huge surplus of oil in the world, put down to both buoyant supply and weaker demand, as long as global economy slower growth, yes it could be damage the commodities prices, and that could leave prices at levels not seen in decades. Here's a snippet from Goldman's latest note on oil:
The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 on further OPEC production growth, resilient non-OPEC supply and slowing demand growth, with risks skewed to even weaker demand given China's slowdown and its negative EM feedback loop... While not our base case, the potential for oil prices to fall to such levels, which we estimate near $20/bbl, is becoming greater as storage continues to fill.
That's the level oil was at for most of the 1990s — though of course, $20 then was worth more than $20 now. Oh no, it's a bad signal for oil industry, more depreciation on stocks market for oil companies shares
Source : Goldman Sachs
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