The global head of Commodities Research in the Global Investment Research (GIR) Division, consider the oil market will be more volatile. He appears risks price reducing below $20 per barrel. Expert estimate the oil market continue look for supply and demand balance. Such uncertainty makes prices unstable. Storage reservoirs are exhaust in some warehouses. To stop extraction of oil that has no places to store the prices should fall lower. “While not our base case, the potential for oil prices to fall to such levels, which we estimate near $20/bbl, is becoming greater as storage continues to fill”, – analyst concludes. The most likely scenario is in 6 to 9 month oil prices risk to go below $20 and couldn’t go higher $40 per barrel.
Goldman: oil hazard fall below $20 per barrel, due to lack of storages