Brent Crude Oil 2015
New York Stock Exchange shows that Crude Oil is depreciating day by day. But due to the fact that traders have stopped betting on lower prices at the end of the year, namely, because of future snowstorm in the US and based on the expectations that major central banks are going to pursue new opportunities the prices have been adjusting.
Anyways at the end of the year the US price pattern was still down almost 13% monthly on the basis of continuing concerns about the absolute oversupply.
American contracts for petroleum have fallen below $ 27 for the first time since September 2003, as those who invest are not sure that a huge surplus in raw oil will coincide with a small measure of economic growth, particularly in China.
Secondly, on the ICE Futures trading platform in London, Brent improved by $ 2.93, or 10.02% to close the year over $ 32 a barrel.
Brent Crude Oil 2015 - Prices Outlook
At the beginning of the last year's week, markets in the capital of England challenged the futures Brent Crude price and it gained $ 3.45, or 11.2%, following a three week loss. Prices for Brent Crude Oil have not risen by almost 14% since the beginning of the year. But soon enough Brent fell to $ 27.10, a level unprecedented since October 2003.
Earnings are likely to remain incomplete in the short-lived run on the permanent absolute excess supply and fear about the global economy, particularly in China. China is one of the main oil consumer and has been the key force of price movement of the Oil demand around the world. But with its stagnant economy, and limited improvements, China is nowhere to help the Oil prices rise.
The Organization of the Petroleum Exporting Countries yesteryear has decided to intervene in the declining market in order to protect the minimum level of Brent Crude price to continue production. But most analysts in the drilling market await for a worldwide satiation and a rebounce of the prices in the months to come due to soaring financial troubles in North America, Saudi Arabia and Russia.
Finally, the return of Iran to the worldwide oil emporium following the approval of western countries may harm the chances of Oil rebounding and can move the prices even lower. Especially if you consider a high of $115 per barrel two summers ago, and the meager price at the end of 2015 together with a huge oversupply on the global market, Iranian government may decide to limit the export if it is seemed not profitable.
Like in any bear market, big stories are going to come out and raise hopes and prices for a limited period of time, as mentioned above, but they are dead cat bounces and a sharp decline follows. The only way to earn a profit in such a condition is to catch these bounces and place a down trade. That requires outstanding timing on your part and nerves of steel. The only reason to go up is some major decisions by the largest oil producers in the Middle East, which is nowhere to be seen.