The second day of the fresh trading week has heaped yet more misery on the oil market. Its the same story as the last week - of declines along familiar lines (global demand, lower Chinese imports, economic uncertainties, oversupply of light crude in particular - the whole works).
Compared to last week, on Monday the Brent front-month contract ended 8.11% lower while the WTI ended 7.01% lower.
Having breached $75 per barrel floor, Brent futures are now testing $70 with the WTI having fallen through it some time ago. This is for all intents and purposes a rout based on weaker demand and more than adequate supply. It means that as things stand - at least from the Oilholic's perspective - a $80 oil price is now the ceiling, and not the floor!
The current market sentiment has sent Wall Street banks scrambling to lower their oil price forecasts and market observers to tone down their demand growth forecasts for both this year and the next. This blogger has long been suggesting that 2024 will end in an oversupply of light sweet crude. But as it appears, the whole market might well be in surplus regardless.
Away from pricing, here's yours truly latest missive for Energy Connects on M&A activity in the sector which appears to be pretty buoyant. Looks like the low price climate has seemingly narrowed the buyer-seller disconnect.
More musings to follow soon. Keep reading, keep it here, keep it 'crude'!
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© Gaurav Sharma 2024. Photo: Oil production site. © Jplenio / Pixabay, 2018.
