Written by: Ade
What a start 2016! As of the time of writing this article WTI crude oil stood at $27.99. This is a low the market hasn’t seen for many years and is adding further pressure to global oil players early this year as well as Iran announcing an extra 500K barrels a day in production/supply. The Dow Jones and S&P 500 have also shown some effects of the falling price and are not supporting higher prices WTI in-turn. We say this because global markets started selling off early 2016 amid the turmoil in China and negative ISM readings in early January from the U.S.
The oil and gas industry is still in for a bumpy ride in 2016, the questions I put to you is what do you see the bottom of the barrel being? $15, $20…..where does it stop do you think? My fundamentals and technicals indicate we still have further downside to go however my other concern is how much pain can nations dependent on the price of oil take? Such as Russia and Venezuela and many others?