23 Apr 2014
Oil prices extends the correction lower – BlackRock
FXStreet (Edinburgh) - Russ Koesterich, BlackRock’s Global Chief Investment Strategist, remarks oil prices keeps their downside.
Key Quotes
“By most fundamental measures, oil prices should be declining. In fact, the Energy Information Administration announced last week that oil inventories in the U.S. are approaching an all-time high”.
"Furthermore, data showed the biggest one-week increase in stockpiles in 13 years, with inventories rising by 10 million barrels to 394.1 million, only 3.4 million below the all-time peak reached in May 2013. While strong U.S. production and rising inventories should keep a lid on prices, events outside the United States are putting upward pressure on oil".
"First, production in several key Middle Eastern and North African producers — Libya, Nigeria and South Sudan — are well below potential, helping to limit global supplies. In addition, fears of escalating violence in eastern Ukraine and potential sanctions against Russia, the world's second-largest oil producer, are pushing prices higher. While equity investors may be ignoring events in Ukraine, oil traders are not, with oil prices hitting a six-week high”.
Key Quotes
“By most fundamental measures, oil prices should be declining. In fact, the Energy Information Administration announced last week that oil inventories in the U.S. are approaching an all-time high”.
"Furthermore, data showed the biggest one-week increase in stockpiles in 13 years, with inventories rising by 10 million barrels to 394.1 million, only 3.4 million below the all-time peak reached in May 2013. While strong U.S. production and rising inventories should keep a lid on prices, events outside the United States are putting upward pressure on oil".
"First, production in several key Middle Eastern and North African producers — Libya, Nigeria and South Sudan — are well below potential, helping to limit global supplies. In addition, fears of escalating violence in eastern Ukraine and potential sanctions against Russia, the world's second-largest oil producer, are pushing prices higher. While equity investors may be ignoring events in Ukraine, oil traders are not, with oil prices hitting a six-week high”.