Analysts Not Surprised by Move into Bear Territory
Analysts at Cantor Fitzgerald Europe (CFE) are not surprised by the move into bear territory, according to Ashley Kelty, an oil and gas research analyst at CFE.
“We are not hugely surprised by the move into bear territory, given the waivers granted to eight countries by the US from Iran sanctions, and the rumours of Russia and Saudi Arabia discussing possible production cuts next year. This signals that the likelihood of oversupply in the near term is far more likely,” Kelty said in an emailed statement sent to Rigzone on Friday.
“The surprise has been the talk that the Saudis are looking into a breakup of the OPEC cartel, and whilst this would take a long time to happen, it is a remarkable change in outlook for the market, and this will only unsettle already jittery traders,” Kelty added.
“Until we get some more clarity on whether the United States and China will kiss and make up, the demand outlook continues to look negative. As before we would not be surprised to see Brent testing the $65 level in the near term,” Kelty continued.
In a television interview with Bloomberg on November 12, Guy Wolf, global head of market analytics at London-headquartered commodity broker Marex Spectron, said, “I wouldn’t expect to see prices materially below say $65 per barrel”.
“If we get below that sort of level it’s going to be indicating that we’re in a significantly more serious global growth slowdown than we currently think we are,” Wolf told Bloomberg.
The Wall Street Journal reported last week that Saudi Arabia was researching the possible impact of a breakup of the oil producers’ group. CNBC reported Monday however that Saudi Arabia's energy minister said there are no plans to abolish OPEC.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension