Print OptionsCommodity Update; Crude Oil – 09 December 2014
Brent and WTI crude fall to five year low with little respite in sight
Crude prices continued to fall last week and at the open on Monday as even a record payrolls report from the US failed to stall the decline.
With OPEC clear that supply from the middle eastern region will remain at constant levels and little indication emerging from the US that the number of Shale drilling rigs will reduce any time soon, the outlook for Crude bulls still appears is bleak.
This is despite the brighter economic backdrop for the US economy, a further loosening of policy from the Chinese central bank and continued increases in month on month demand from China.
All in all it remains very unlikely that oil prices will return, in the near to medium term, to the levels seen only a few months ago. Despite this, there is scope for the pace of decline to slow and for prices to begin levelling out in 2015 as over the medium term, the current squeeze could be expected to naturally constrict exploration and production within the industry.
This is while prices substantially below the current levels would also be expected to have a stifling effect upon much of the Shale industry in the US. However, for the time being; the outlook for crude benchmarks across the globe remains negative.
Brent/WTI // Hourly Intervals
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