Oil prices continue the fall; Brent fell to $47.34
27.10.2015,
11:48
Oil prices reversed course mid-day on Monday falling most of the day after lackluster US housing data weighed on the markets, according to news reports.
YEREVAN, October 27. / ARKA /. Oil prices reversed course mid-day on Monday falling most of the day after lackluster US housing data weighed on the markets, according to news reports. Crude oil fell 64 cents to 43.96 while Brent oil tumbled 48 cents to 47.51 On Tuesday morning oil continues to fall, with crude oil dipping another 45 cents to 43.54 and Brent dipping to 47.34.
The commodity's ultimate scarcity means the bounce is inevitable, Ali Al Mansoori, the head of Abu Dhabi's Department of Economic Development, told Bloomberg in an interview on 25 October. The price of crude will probably recover next year to $60 per barrel, after bottoming out at $45, Al Mansoori said.
"It is a gift to the world that oil has dropped to $50," he added, as it allowed buyers to put in place economic policies needed to foster economic growth in the next five years.
Faith Birol, executive director of the International Energy Agency, is expecting still further declines in oil industry investment in the coming year. Speaking at Singapore International Energy Week on Monday, he said it would be the first time in two decades that oil investment declines for two consecutive years.
Traders are also waiting to hear whether the U.S. Federal Reserve raises interest rates after its meeting this week. Speculation that the Fed will not raise rates has pushed down the U.S. currency.
Goldman Sachs sees further risk to crude prices which are already down 60 per cent from a year ago.
"Distillate storage utilization in the U.S. and Europe is nearing historically high levels, following near record refinery utilization, only modest demand growth (especially relative to gasoline), and increased imports from the East on refinery expansion and Chinese exports," it said in its report. -0-
The commodity's ultimate scarcity means the bounce is inevitable, Ali Al Mansoori, the head of Abu Dhabi's Department of Economic Development, told Bloomberg in an interview on 25 October. The price of crude will probably recover next year to $60 per barrel, after bottoming out at $45, Al Mansoori said.
"It is a gift to the world that oil has dropped to $50," he added, as it allowed buyers to put in place economic policies needed to foster economic growth in the next five years.
Faith Birol, executive director of the International Energy Agency, is expecting still further declines in oil industry investment in the coming year. Speaking at Singapore International Energy Week on Monday, he said it would be the first time in two decades that oil investment declines for two consecutive years.
Traders are also waiting to hear whether the U.S. Federal Reserve raises interest rates after its meeting this week. Speculation that the Fed will not raise rates has pushed down the U.S. currency.
Goldman Sachs sees further risk to crude prices which are already down 60 per cent from a year ago.
"Distillate storage utilization in the U.S. and Europe is nearing historically high levels, following near record refinery utilization, only modest demand growth (especially relative to gasoline), and increased imports from the East on refinery expansion and Chinese exports," it said in its report. -0-
