Commodity update; Crude Oil – 11 November 2014
Crude Oil benchmarks remain under pressure
Crude oil prices fell further last week as the prospect of either a boost in demand, or a reduction in supply, remained elusive.
While both Brent and WTI saw a minor boost over the course of Friday and at the open on Monday, this was largely as a result of developments in Ukraine and positive statements made by the Chinese Premier Xi Jingping regarding the economy. Furthermore, the move failed to sustain itself past yesterday’s London close.
Looking to the immediate future, with economic data releases aside, the most significant event for oil prices over the near – medium term will be the next OPEC meeting on 27 November. It is here that the group will announce to the world whether it will either take action to support market prices, or if it will seek to slug it out with US shale producers for market share instead.
All in all, in the absence of action from OPEC, a reduction in US shale output or a sudden and serious escalation of events in Ukraine; the outlook for crude prices remains bleak going into the close of the year.
For this reason, we reiterate our previous summary statement that further declines in both Brent and WTI cannot be ruled out.
Brent/WTI // Hourly Intervals
The contents of this report and the Stockatonia website (https://www.stockatonia.co.uk/) have been prepared to provide general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Please always remember that the value of investments may fall as well as rise. Investing in securities, and any other products associated with them, carries a high degree of risk and may not be suitable for all investors. For advice or guidance related to investing in securities markets, please consult with your own financial adviser.
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.