Oil Markets Brace for Another Price Slump Amid Oversupply

摘要

The warning bells are ringing for another slump in oil prices. International benchmark ICE Brent is trading below $55 per barrel and has lost 16% of its value since the end of June, while global supply continues to grow, with US tight oil producers showing unexpected resilience in the face of lower prices and Opec’s Mideast members pumping record levels of sour crude. With fundamentals still pointing solidly at oversupply, market players are now nervously eyeing the low of $46.59/bbl ICE Brent hit in January (JFI Jul.13’15). Technical analysis, much consulted by traders, indicates that a slump in Brent into the $30s becomes a possibility if support at $45/bbl is breached. Brent is already fast approaching the psychological barrier of $50/bbl. Beyond that, the bulls could stage a defense at around $48/bbl and $45/bbl, technical charts suggest, but once below that there is little support.