Crude oil futures for October traded sideways last week after brief attempts to test the highs of $46.45. The US Energy Information Administration revised its US supply forecasts as it expects US crude oil production to grow 500,00 barrels per day against earlier estimates of 600,000 Bpd. The EIA also raised its forecasts for demand for OPEC output in 2016 by an estimated 500,00 Bpd. While the EIA's forecasts were expected to be positive for the crude oil prices, Goldman Sachs released a note stating that oil prices could remain low and potentially decline to $20 per barrel. WTI futures are currently trading at $44.58 while Brent futures were trading at $47.78 with the spread just over $3. WTI crude oil futures are trading near the major technical support levels between $44.20 – $43.50. A break below this support could see prices decline towards the previous lows near $40.
Markets Open on Cautious Note
Daily Analysis - 14/09/2015