Prices if oil could be under $ 40 per barrel before falling too long, according to Energy Aspect analyst, as the product as their biggest fall in prices in the first half of the year has been improving in the last two decades.
“It’s as if the knife is coming right now, I’ve never really seen bad feelings,” said Amrita Sen., founder and oil analyst on energy aspects, CNBC on Wednesday.
“We had customers who say that emails have been negotiating it for 20 or 30 years and have never seen anything,” she added.
Oil prices fell more than 20 percent of its year, mark the worst performance in the first six months of this year since 1997, and the product under market conditions.
Oil prices fell more than 20 percent yearly
Continued decline seems to have arisen in prices as investors discontinuing indications that OPEC producers and from non-OPEC member states have reached an agreement to reduce the total burden of supply.
Prices in the previous session fell by 2 percent, as new signs of increased production from Nigeria and Libya, both of which are part of OPEC’s agreement to reduce production.
Production in the 14-member group exporter increased in May due to increased production in Nigeria, Libya and Iraq, leading to a decrease in concern over OPEC’s efforts for global crude oil. OPEC and other manufacturers have pledged to hold 1.8 million barrels from the market by March.
Libyan oil production rose more than 50,000 barrels a day to 885,000 barrels a day, the Libyan source said Reuter. Meanwhile, the increase in Nigeria’s Bonny Light’s 62,000 barrels of crude oil a day in August, Reuters reported
Sen. argues that although it did not predict the level it would dare to stabilize on oil prices, it refused to rule out the possibility that prices were lower than $ 40 per barrel, which could fall in the short term.
Brent crude trades $ 46.16 per barrel on Wednesday’s deal, 0.28 percent, while US WTI was $ 43.70 per barrel, 0.44 percent.