Technical & Fundamental Oil Reports Specialists

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Is the end of the Oil Age upon us?

Published Tuesday, September 23rd, 2014

Given that the world’s largest oil production region is in a state of crisis with IS running rampant it is remarkable that oil prices are so unmoved. The US with wide support is conducting bombing raids on Iraq and overnight this has been extended to Syria. Turkey was overwhelmed at the weekend by 120,000 Kurds from Syria fleeing in the face of the IS advance. Over in Libya, with two governments claiming legitimacy, it would seem to be only a matter of time before oil production collapses to minimum levels again.

Nevertheless crude prices fell yesterday with Brent losing $1.42/bbl to close at $96.97/bbl and WTI losing 78cts/bbl to close at $90.87/bbl. Comments by the Chinese Finance Minister at the G20 meeting would seem to have been a key influence by failing to promise any kneejerk stimulus in response to slowing growth. When China sneezes, commodity demand catches flu.

Markets should be soothed a little today by the news that the HSBC/Market flash China PMI for September has come in at 50.5 from August’s final reading of 50.2 and beating Reuters poll expectations of 50. The employment sub-index fell to 46.9, the lowest level since February 2009, but the new export orders index climbed to a four-and-a-half year high.

to read the rest of the report, please click here 

Posted by David Hufton