15.10.2015 - Oil may fall to $ 44 in the coming days
The price of American benchmark Light Sweet crude oil continues to fall due to stable oil oversupply on the market, which according to various estimates is ranging from 1.5 to 2.5 million barrels per day. The International Energy Agency said that the balance between demand and production volumes will not be achieved in 2016 despite a likely decline in oil production in the United States to 8.6 million barrels per day, compared to the highest level this year, 9.6 million barrels recorded in April. Risks associated with the slowing growth in China and waiting for entering of additional 700 thousand barrels per day from Iran after the lifting of sanctions will keep the price below the level of 50.0 dollars per barrel. Our medium-term outlook remains negative and we expect a drop to 44 dollars per barrel in the near future.