he price of oil has fallen to fresh five-year lows in the wake of two separate reports indicating a global supply glut.
Opec oil producers released a forecast indicating less global oil demand next year.
A separate US report, which showed a surprise increase in the country’s crude oil supplies, also pushed prices lower.
The price of Brent crude has fallen 43% since mid-June.
It fell another 3.61% to close at $64.41 on Wednesday.
The influential oil commentator Jorge Montepeque at price assessor Platts said the price could fall further.
“There are a certain amount of people that think the mid-to-long term [price] is the mid-60’s,” he told the BBC.
“That means prices could fall further before they reach their balance. I think we could see some spikes or troughs that are a little bit deeper. But over time we could end up around $50 or $60 [a barrel].”
via BBC
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza