05.08.2015 - We forecast drop in oil prices
The price of Light Sweet crude oil continues to show a high level of volatility on the background of conflicting factors that influence the course of trading. So, on the one hand, analysts expect the reduction of excess oil on the market and reduce the rate of growth of oil production, which, together with improved forecasts of global GDP growth leads to an increase in the price of oil futures. On the other hand, the oil reserves in the United States reached a record high (since the beginning of statistics in 1982) and continue to rise. In the near future we can see the problem with limited capacity for storage of oil, which will lead to the collapse of prices in the market. We expect a strong price movement tomorrow after the release of statistics on the labor market in the United States. Our medium-term outlook remains negative and we expect a drop in prices to the levels of 49.00, 45.00 and 40.00 dollars per barrel.