• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 51 mins Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 2 hours Never Bring A Rapier To A Gun Fight
  • 11 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 3 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 9 hours USAvChina.com
  • 5 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 14 hours Aramco Production
  • 3 hours Lest We Forget... A Brief Timeline of China's Modern History
  • 3 hours Democrats and Gun Views
  • 15 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 4 hours Visualizing US Oil & Gas Production (Through May 2019)
  • 3 hours Iran in the world market
  • 14 hours Oil Slide Worries Traders. *relax* This Should Get Sorted by Year End.

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
Download on the App Store Get it on Google Play