12 Feb 2015
Crude oil prices still under pressure – Westpac
FXStreet (Edinburgh) - In the view of Strategist Martina Song at Westpac, the pressure on the crude oil prices is set to remain in the near term.
Key Quotes
“According to the latest EIA report, inventories rose for the fifth consecutive week, to record highs for the fourth”.
“Crude prices have chopped around as markets expect the collapse in rig count to feed through to production”.
“However, the rigs that are cut are the less efficient ones, and the efficient rigs run and run hard”.
“Inventory growth has slowed, but has still beaten market expectations. Refinery strikes may affect inventories; there has been little progress in negotiations”.
“So while there are some signs of a slowdown coming, risks are for pressure on oil prices to continue in the near term”.
Key Quotes
“According to the latest EIA report, inventories rose for the fifth consecutive week, to record highs for the fourth”.
“Crude prices have chopped around as markets expect the collapse in rig count to feed through to production”.
“However, the rigs that are cut are the less efficient ones, and the efficient rigs run and run hard”.
“Inventory growth has slowed, but has still beaten market expectations. Refinery strikes may affect inventories; there has been little progress in negotiations”.
“So while there are some signs of a slowdown coming, risks are for pressure on oil prices to continue in the near term”.