27.02.2015 - Movement of oil will be volatile
The price of Light Sweet crude oil continues to consolidate near the level of 50 dollars per barrel. The future dynamics of trading will be affected by a number of factors. On the one hand the oil reserves in the United States are at maximum levels since 1982, when began to keep statistics on this indicator, - 434.1 million barrels and reduction the number of wells in the third compared to historic highs only led to slower growth in oil production. On the other hand, analysts predict economic growth and oil demand in the second half of 2015, which supports the bulls. In the coming months, there are several factors that will lead to a strong price movement. Firstly, the strike at some US refineries will stop that for a short time will increase the demand for oil and will lead to a jump in prices. Second, on the market there is a shortage of facilities for the storage of oil, which can lead to a sharp drop in prices of oil. We maintain our medium-term negative outlook and expect the fall in oil prices to $ 40 a barrel in the coming months.