Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

OIL COLUMN - Brent edges back below US$50 after short-lived rally


Brent crude edged back below US$50 per barrel on Monday afternoon, after previously enjoying a short spell above the key psychological marker.

The short-lived rally came as Paris based oil watchdog the International Energy Agency (IAE) said there were signals that the oil market will turn. It did, however, also say prices may continue to go lower before any turnaround.

In London trading Brent crude was down 1.5% trading at US$49.45, while West Texas Intermediary futures were down at US$48.30.

Trading volumes are reduced on Monday due to the Martin Luther King holiday in the United States.

Monday’s crude movements were punctuated with comments from Mohammad al-Sabban, formerly an advisor to Saudi Arabia, who claim’s the major oil producing country can withstand low oil prices for as long as eight years, due to its large cash reserves.

Elsewhere, Bob Janjuah, banker and well-followed market commentator, predicted crude prices as low as US$35-30 and said that Saudi Arabia would keep production volumes high.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use