• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 hours The EU Loses The Principles On Which It Was Built
  • 42 mins Crude Price going to $62.50
  • 6 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 11 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 11 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 11 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 6 hours Why hydrogen economics is does not work
  • 13 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 19 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 19 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 17 hours Saudi Aramco IPO Seems Unlikely
  • 3 hours < sigh > $90 Oil Is A Very Real Possibility
Turkey Turmoil Drags Oil Down

Turkey Turmoil Drags Oil Down

While Turkey might not be…

Oil Prices Hit 7-Week Low As Trade War Heats Up

Oil Prices Hit 7-Week Low As Trade War Heats Up

Oil prices traded close to…

Oil Prices Drop in Tuesday Trading on Analyst Warnings

Oil Prices Drop in Tuesday Trading on Analyst Warnings

Oil prices took a dive on early Tuesday trading in the wake of analyst’s warnings that this month’s rally was overblown and that a production freeze would not help prices.

The overdone price rally earlier this month boosted prices for crude by more than 20 percent from beginning of August to the end of last week. Since then, oil prices have seen a 3.5 percent drop.

At 0032 GMT, International Brent Crude futures were at $48.98 per barrel, which was a drop of 18 cents. West Texas Intermediate saw 23 cents to $47.18 per barrel.

French bank BNP Paribas commented “The narrative of a rapid re-balancing of the oil market has ... met a few stumbling blocks. Some of Q2's disrupted supply returned, OPECS's collective output rose, and US shale oil is being spared the dramatic year-on-year declines forecast earlier in the year,”

Goldman Sachs said that if OPEC and other producers such as Russia decide to freeze oil output at the current levels, the move would leave production at record highs, and the supply and demand for oil would probably not be balanced.

Goldman Sachs anticipated that prices would stick between $45 and $50 per barrel through net summer, adding "a sustainable pick-up in disrupted production would lead us to lower our oil price forecast with WTI prices ... to average $45 per barrel."

On Monday, the company said that "The risk to OPEC production remains skewed to the upside". That came from Goldman's Peter Hackworth and Henry Tarr.

Oil also saw trading losses on Monday, with prices dropping 3 percent in London. Brent crude was at $49.36 on that market and West Texas Intermediate fell to $47.21.

On the plus side of the ledger, China said last week that its exports of diesel and gas were up in July, and a ceasefire by militants in Nigeria means that production could begin in the region.

Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Kr55 on August 23 2016 said:
    Just always remember these analysis are in the business of looking out for the little guy. They would never be trying to talk up their book ;)

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News