Oil prices scrap back some losses after “Black Friday”

November 27 23:46 2018

Oil prices seem to be bouncing back from the “Black Friday” session that saw it lose nearly 7 percent. The price increase led to oil scrapping back some of the losses in the previous session.

Brent crude futures LCOc1 were last up $1.16 on the day at $59.96 per barrel by 1044 GMT, with U.S. futures CLc1 going up 69 cents at $51.11 a barrel.

“It is difficult to say whether $60 is the new normal, as there doesn’t seem to be a ‘normal’ at the moment,” said Jack Allardyce, Cantor Fitzgerald oil and gas analyst.

“The recent weakness seems dramatic given the lack of actual catalysts – it seems to have been driven by a wider impending sense of doom amidst weak equities, geopolitics, subsequent softening demand and increasing supply,” the analyst said.

The International Energy Agency has predicted the oil demand globally to hit over 100 million barrels a year in 2019, a growth rate of 1.4 million barrels per day. However, this is down from its initial prediction in June of 1.5 million bpd.

The appreciation of the USD has undercut demand in key emerging market economies, leading to higher borrowing costs, which has threatened global growth particularly with the escalating trade war between the United States and China pushing investors out of assets such as equities or oil.

“2019 will be a choppy year for the oil market as questions surrounding the prospect of a slowing global economy and a supply surplus are expected to increase,” analysts at Fitch Solutions said on Monday.

Fitch said that even an expected supply cut led by the Organization of the Petroleum Exporting Countries (OPEC) following an official meeting on Dec. 6 “may not be enough to counteract the bearish forces”.

More news and updates about the stock market, financial system, and the economy can be found on https://atlanticfinancepartners.com/

About Atlantic Finance Partners

Atlantic Finance Partners is a financial services company headquartered in New York, United States of America. With over 40 years of excellent service delivery, the company has grown to become one of the most sought-after service providers in the industry, offering a wide range of services focused on small and medium-sized enterprises (SMEs).

Atlantic Finance Partners specializes in the valuation, merger, and sale of privately held SMEs, assisting them in growing and finally reaching towards a Public Offering.

Atlantic Finance Partners brings levels of skill, experience, and resource to SMEs, even exceeding what is available to much larger companies when they engage the largest M & A consultants.

Media Contact
Company Name: Atlantic Finance Partners
Contact Person: Peter Caldwell
Email: Send Email
Phone: +1 (929) 242-6206
Address:23rd Floor, 165 Broadway
City: New York
State: NY 10006
Country: United States
Website: https://atlanticfinancepartners.com/

  Categories: