Flaman Rentals Blog

OIl prices to remain low

Posted by Flaman Agriculture Jul 21, 2015

The Australian is reporting that  . . . .

Crude oil is likely to remain depressed in the year ahead as the major producers show no sign of altering their strategy of maintaining supply ahead of an expected pick up in global demand.

The glut could get worse next year with the resumption of international sales by Iran following last week’s nuclear deal with the West, but the sustainability of any Iranian sales isn’t guaranteed.

Helima Croft, RBC Capital Markets’ global head of commodity strategy, expects West Texas crude to stay in the vicinity of $US50-$US60 a barrel in the absence of significant production cutbacks.

“Until you have Saudi Arabia, Nigeria or Iraq deciding to reduce production, we think WTI is kind of range bound,” says Ms Croft, who has worked at the US Council on Foreign Affairs and the CIA.

“Increasing global demand can provide a floor, but to move comfortably above $US60 a barrel in WTI, we will need to see production come down materially.”

Full story is at https://www.theaustralian.com.au/business/markets/oil-price-outlook-dim-rbc-capital-markets-helima-croft/story-e6frg916-1227449805205

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