12 Jan 2015
Oil prices have fallen for seven consecutive weeks - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman suggested that the risk is still to the downside.
Key Quotes:
"Even though the February WTI futures contract spent most the week bouncing along the recent trough".
"Saudi Arabia's last move, to cut the discounts offered in the US and Europe, demonstrates its resolve to preserve market share. At the same time, the apparent liberalization of US rules on condensate exports could boost US exports by another million barrels a day by the end of the year, according to some industry estimates".
"This will intensify the competition in third markets".
"Over time, the decline in prices will boost demand. There are already preliminary signs that the decline in gasoline prices in the US is boosting demand".
Key Quotes:
"Even though the February WTI futures contract spent most the week bouncing along the recent trough".
"Saudi Arabia's last move, to cut the discounts offered in the US and Europe, demonstrates its resolve to preserve market share. At the same time, the apparent liberalization of US rules on condensate exports could boost US exports by another million barrels a day by the end of the year, according to some industry estimates".
"This will intensify the competition in third markets".
"Over time, the decline in prices will boost demand. There are already preliminary signs that the decline in gasoline prices in the US is boosting demand".