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13 Jan 2016
Oil: Momentous fall below $30/bbl for WTI – Deutsche Bank
FXStreet (Delhi) – Research Team at Deutsche Bank, notes that yesterday saw a momentous fall below $30/bbl for WTI Oil for the first time since December 2003 which makes it -17% YTD.
Key Quotes
“Prices did recover slightly at the close but WTI still finished the session with a - 3.09% decline to settle at $30.44/bbl. Reports of a bombing in Istanbul and comments from Nigeria’s Oil Minister suggesting that a few OPEC member countries wanted to request an emergency meeting actually saw the price go above $32 in the early afternoon before the comments were quickly downplayed by his counterpart in the UAE who said that the cartel will not change its policy despite the latest price collapse.
Yesterday saw more evidence of pain at a micro level however after BP announced that it plans to cut 4,000 jobs, while Petrobras announced that it will slash its five-year investment plan by over $30bn. With much of the chatter suggesting that Oil could fall closer to the $20 level, it was noted in the WSJ that some heavier grade Oils from Canada and Iraq are already trading in the teens. Oil is now down 50% from its peak in June last year, or over 70% from the highs of June 2014.”
Key Quotes
“Prices did recover slightly at the close but WTI still finished the session with a - 3.09% decline to settle at $30.44/bbl. Reports of a bombing in Istanbul and comments from Nigeria’s Oil Minister suggesting that a few OPEC member countries wanted to request an emergency meeting actually saw the price go above $32 in the early afternoon before the comments were quickly downplayed by his counterpart in the UAE who said that the cartel will not change its policy despite the latest price collapse.
Yesterday saw more evidence of pain at a micro level however after BP announced that it plans to cut 4,000 jobs, while Petrobras announced that it will slash its five-year investment plan by over $30bn. With much of the chatter suggesting that Oil could fall closer to the $20 level, it was noted in the WSJ that some heavier grade Oils from Canada and Iraq are already trading in the teens. Oil is now down 50% from its peak in June last year, or over 70% from the highs of June 2014.”