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Hansen: Why i'm not calling it an oil rally, yet
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With OPEC meeting next week, Saxo Bank's Head of Commodity Strategy reflects on an 'amazing' year for oil. Ole Hansen says no one could have predicted crude's decline from its peak of around USD 110 / barrel a year ago. We have seen a small uptick in prices since the lows in January and although some in the markets suggest we could revisit that, Hansen disagrees. However, he doesn't see WTI in particular rising much more than the USD 60 it's currently trading at.
Geopolitical events, of course, can always cause an oil price hike. Ole, though, thinks continuing US production will cap any rises. Next Friday's OPEC meeting is not expected to make any changes to production.
Geopolitical events, of course, can always cause an oil price hike. Ole, though, thinks continuing US production will cap any rises. Next Friday's OPEC meeting is not expected to make any changes to production.