Monday, March 16, 2015

Oil: WTI drops to $ 43.67, new low from April 2009 – Il Sole 24 Ore

Oil: WTI drops to $ 43.67, new low from April 2009 – Il Sole 24 Ore

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This article was published March 16, 2015 at 09:42.

Strong Dollar and US offer push back corner oil prices, which have updated this morning lows of the past six years (mid-April 2009). WTI, delivery of reference in April, has slipped to a low of $ 43.67 a barrel before recovering partially – in early trading in Europe – at 44.43 (-0.91%). In line moved too crude North Sea, with the same contract that trades at $ 54.29 (-0.70%) after a minimum of $ 53.33. A depressing prices also contribute massive realize related rebound scored in the second half of February, the market effect speculative climate colder than expected in the northern hemisphere, the delays in deliveries in Iraq and Kuwait and disruption mining activities in Libya.

This week, after much volatility seen in recent sessions, it might be harder for the oil market. I believe some analysts according to which the market is structurally oriented downward because of a surplus of production in the face of a question that is hard to take back tone. To corroborate this account was also, last Friday, the International Energy Agency, according to which the growth of the US offer has shown so far only “little signs of slowing down.” To understand where the market might go the focus is on the Fed, whose operating committee (FOMC) will meet on Tuesday and Wednesday to update the economic estimates. Investors hope for a clarification of US monetary policy and, in particular, whether there will be or not the conditions for an increase in interest rates in June. This possibility has a double effect at the time little ponderable: on the one hand strengthens the dollar but, on the other hand, makes US exports less competitive.



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