Become lower for even longer (ICP forecast as of 11 Dec 2015)

December 12, 2015 • Tell FriendsPrinter Friendly

The summary of market info as of 11 Dec 2015 is as follows:

  • OPEC members failed to agree on oil production ceiling in the 4th Dec meeting, after Iran rejected any production cut proposal until they can restore 1 million bopd output after the removal of international sanctions next year.
  • In the commodity market, net-long position dropped to the lowest level since September 2010. It seems market still wait and see for the next six months since there will be no cut in production to provide support for the market.
  • Currently the Asian market is very competitive since the major destination of crude export from the middle east is going to Asia region. This pressures the SLC price as it was reflected since September 2015, the SLC price is slightly lower the WTI.
  • EIA forecasts WTI at $48.91 for 2015 and $50.79/bbl for 2016, while Brent at $52.94/bbl and $55.67/bbl for 2016.

Based on the graph, we estimate SLC will be down to $36.90/bbl in December 2015 and will average $ 49.95/bbl for full year 2015.

Dec 2015

Disclaimer: The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only and would be updated every month.

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