Oil Glut May Worsen

The International Atomic Energy Agency (IAEA) is expected to release its report regarding Iran’s compliance to curb its nuclear program, possibly at the conclusion of today’s meeting in Vienna.  The report is expected to pave the way for Western sanctions, including oil exports,  to be lifted.  There are concerns that these additional Iranian barrels will worsen the existing oil glut, with some figures showing that Iranian exports may rise by 21% to 1.10 million bpd. 

Although WTI crude fell below $30/bbl again to $29.39, Goldman Sachs is not moving its prediction that it will average $40/bbl in the first half of 2016.  This is not in alignment with many other energy experts who expect that the average will be under $20/bbl within the same timeframe.  The market shows support for the latter view.

Stock markets rebounded globally yesterday, with crude following suit, but have since reversed.

Written by:

As Director of Marketing for Guttman Energy, I provide expertise within advertising strategies, digital marketing, and public relations to communicate our key messaging to our stakeholders. I offer diversified leadership, drive innovation and cutting-edge business, branding, to generate interest in Guttman service offerings.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED “AS IS,” WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.