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

BRENTWTI11NOVEMBER

.

IMPORTANT:
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.