Five Reasons Why Oil Prices Will Fall in the Near Term

[Alexa Smith]

1. There are growing worries that Britain will vote to leave the European Union. There is uncertainty about the vote, which takes place on June 23, with the “Leave” camp slightly ahead in most polls.
   

   

   
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2. Economic data coming out of the U.S., the world’s biggest economy, China, the second biggest economy, Japan, the third biggest economy, and the Eurozone, the world’s biggest economic region, remains fragile.
3. The World Bank downgraded its forecast for global growth again this year to just 2.4% from its 2.9% prediction in January. The sluggish projections are a result of anemic growth in advanced economies, low commodity prices, and weak global trade.1
4. In the midst of global economic malaise and dwindling demand for crude oil, OPEC and other oil-producing countries continue to pump out more oil. It’s basic supply-and-demand metrics. OPEC’s daily output is up 24,000 barrels per day (bpd) to 32.1 million. Iran, which has the fourth largest oil reserves in the world, had its oil sanctions lifted in January. The country is on track to produce 3.5 million bpd, putting it back to its pre-sanction levels.2
5. Lastly, rising oil prices have encouraged some North American producers to reactivate a number of rigs. Despite the recent increase in oil prices, even OPEC has warned that there is “still a massive global supply overhang.”3

 

[K-Pia]

Taleb says that if you've got more than one reason for doing something. Then you're trying to convince yourself XD You can find 99 reasons for oil to fall and only one for it to rise and fortune can actualize the only reason for gold to rise.

 

[Zestilio]

"Remain" camp seems to be fighting back, so worries subside, and even if they don't - not sure why it affects oil more than usual. OPEC's more of a concern to me, as they've shown some tendency to not be able to affect prices in any positive way.

 

[murray t turtle]

1. There are growing worries that Britain will vote to leave the European Union. There is uncertainty about the vote, which takes place on June 23, with the “Leave” camp slightly ahead in most polls.
   

   
2. Economic data coming out of the U.S., the world’s biggest economy, China, the second biggest economy, Japan, the third biggest economy, and the Eurozone, the world’s biggest economic region, remains fragile.
3. The World Bank downgraded its forecast for global growth again this year to just 2.4% from its 2.9% prediction in January. The sluggish projections are a result of anemic growth in advanced economies, low commodity prices, and weak global trade.1
4. In the midst of global economic malaise and dwindling demand for crude oil, OPEC and other oil-producing countries continue to pump out more oil. It’s basic supply-and-demand metrics. OPEC’s daily output is up 24,000 barrels per day (bpd) to 32.1 million. Iran, which has the fourth largest oil reserves in the world, had its oil sanctions lifted in January. The country is on track to produce 3.5 million bpd, putting it back to its pre-sanction levels.2
5. Lastly, rising oil prices have encouraged some North American producers to reactivate a number of rigs. Despite the recent increase in oil prices, even OPEC has warned that there is “still a massive global supply overhang.”3

Well it sure did go down last week; most trends are still up.I seldom do countertrends; but interesting theory if Brits downsize gov[make it more efficient-leave]-that is bearish for oil ?? LOL maybe maybe not.Thanks

 

[murray t turtle]

"Remain" camp seems to be fighting back, so worries subside, and even if they don't - not sure why it affects oil more than usual. OPEC's more of a concern to me, as they've shown some tendency to not be able to affect prices in any positive way.

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Its almost lunchtime, thursday, June 22+ the brent bears cant even pull it down 1%. Mr Soros said if [Great] Britian pulls out= pound gets pounded down[bear raid] 20%[Accurate paraphrase,NOT a direct quote]
Cash TX TEA [light sweet] is up about 1%. Frankly i would never speak disrespectful of fed reserve like Bunker Hunt did. But that oil co + silver buyer had a good point ''Buy commodities- any f**l can run a printing press!!''