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14 Apr 2015
Oil prices might decline in the short-term – KBC
FXStreet (Barcelona) - The Research Team at KBC Bank, comment on the recent EIA report, and further maintain a short-term bearish outlook on oil prices as crude inventories continue to surprise to the upside.
Key Quotes
“Commodities saw a generally calm session on Monday, mainly thanks to crude. The oil price was seen in a relatively narrow range between 58 and 59 USD/bbl in the most of the session.”
“Market paid almost no attention to another set of bullish news from the US Energy Information Agency (EIA), which said it expected a slight decline in shale oil production in May (by 45 kbpd) mainly thanks to a decline in Bakken and Eagle Ford regions.”
“On the other hand, EIA’s data are based on a broad set of assumptions (for example regarding the future evolution of rig count and - most importantly - on production from new wells). Jury is thus still out on eventual impact on lower prices on US crude production.”
“Let us also recall that weekly US crude stock data have surprised constantly positively to the upside as far as week-on-week changes are concerned. We therefore maintain our call for decline in oil prices in the short-term.”
Key Quotes
“Commodities saw a generally calm session on Monday, mainly thanks to crude. The oil price was seen in a relatively narrow range between 58 and 59 USD/bbl in the most of the session.”
“Market paid almost no attention to another set of bullish news from the US Energy Information Agency (EIA), which said it expected a slight decline in shale oil production in May (by 45 kbpd) mainly thanks to a decline in Bakken and Eagle Ford regions.”
“On the other hand, EIA’s data are based on a broad set of assumptions (for example regarding the future evolution of rig count and - most importantly - on production from new wells). Jury is thus still out on eventual impact on lower prices on US crude production.”
“Let us also recall that weekly US crude stock data have surprised constantly positively to the upside as far as week-on-week changes are concerned. We therefore maintain our call for decline in oil prices in the short-term.”