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7 Jan 2015
Today’s EIA data might support oil’s downtrend – Danske
FXStreet (Barcelona) - The Danske Bank Research Team expects today’s EIA data to show another increase in US stockpiles, which might support the ongoing downtrend in Oil.
Key Quotes
“Still no end in sight to the collapse in the oil price. After dropping 6% on Monday, Brent oil futures fell another 4% yesterday. The oil price has fallen some 30% since 27 November when OPEC decided not to cut production, adding to concerns about excess surplus.”
“Yesterday, Saudi Arabia’s King Abdullah addressed the challenges posed by the low oil price in a speech read for him but he provided no indication that the world’s largest crude exporter is about to cut supplies. In contrast, the kingdom seems keen on maintaining its market share and announced further discounts to US and European buyers on Monday.”
“While US oil drillers appear to react to the decline in prices by laying down rigs, output is still projected to rise as efficiency has increased.”
“Moreover, EIA data released today are expected to show another increase in US stockpiles, which should support the current downward trend in the oil price.”
Key Quotes
“Still no end in sight to the collapse in the oil price. After dropping 6% on Monday, Brent oil futures fell another 4% yesterday. The oil price has fallen some 30% since 27 November when OPEC decided not to cut production, adding to concerns about excess surplus.”
“Yesterday, Saudi Arabia’s King Abdullah addressed the challenges posed by the low oil price in a speech read for him but he provided no indication that the world’s largest crude exporter is about to cut supplies. In contrast, the kingdom seems keen on maintaining its market share and announced further discounts to US and European buyers on Monday.”
“While US oil drillers appear to react to the decline in prices by laying down rigs, output is still projected to rise as efficiency has increased.”
“Moreover, EIA data released today are expected to show another increase in US stockpiles, which should support the current downward trend in the oil price.”