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
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