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31 Mar 2015
Markets sceptical about a bounce in oil prices this year – Rabobank
FXStreet (Barcelona) - With oil prices resuming its weak trend post the bump after Yemen conflict, Jane Foley, Senior Currency Strategist at Rabobank, argues that with US increasing its production to near record levels, and Iran set to raise its oil exports, markets remain doubtful for any probable bounce in oil prices this year.
Key Quotes
“Despite a temporary fillip last week on the back of heightened tensions in Yemen, oil prices remain weak.”
“In view of hopes that Iran can reach an agreement with world powers over the lifting of some sanctions in return for restrictions on nuclear research, the outlook currently appears soft. Although any Iranian agreement this week will only be a precursor to a comprehensive accord by the end June, the Iranian oil minister recently suggested that Iran could be ready to raise oil exports by 1 m b/day.”
“On top continued near record levels of supply from the US (the IEA have reported that last year brought the largest single increase in oil production since record began in the early 1900s), the market is becoming increasingly sceptical about the prospects of any meaningful bounce in oil prices this year.”
Key Quotes
“Despite a temporary fillip last week on the back of heightened tensions in Yemen, oil prices remain weak.”
“In view of hopes that Iran can reach an agreement with world powers over the lifting of some sanctions in return for restrictions on nuclear research, the outlook currently appears soft. Although any Iranian agreement this week will only be a precursor to a comprehensive accord by the end June, the Iranian oil minister recently suggested that Iran could be ready to raise oil exports by 1 m b/day.”
“On top continued near record levels of supply from the US (the IEA have reported that last year brought the largest single increase in oil production since record began in the early 1900s), the market is becoming increasingly sceptical about the prospects of any meaningful bounce in oil prices this year.”