Oil Falls on OPEC Demand Comments and U.S. Higher Inventories

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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza