adminSINGAPORE. — Oil prices dipped in Asian trading yesterday as plentiful supplies and slowing economic growth weighed on markets, although some analysts said that the current downtrend would be modest and expect a recovery later this year.International Brent crude oil futures were trading at $44,81 at 1.48am GMT, down 6c from their previous close. US West Texas Intermediate (WTI) crude was trading at $42,87, down 5c.
Brent hit $44,14 the previous day, the lowest since May, and the contract has shed more than 15 percent in value since peaking in June as a refined product glut as well as slowing economic growth dent the demand outlook for crude oil.
Analysts said they expected more price declines in the short term as oversupply continued while demand growth stuttered.
“My view is that oil prices will find a low between $39 and $42 a barrel over the coming weeks due to headwinds,” said Ric Spooner, chief market analyst at CMC Markets in Sydney, Australia.
“After that, however, we are coming closer to seeing a balanced market again,” he added, saying that $50-$60 a barrel would represent such a supply and demand balance.
Oil markets have been dogged by oversupply in the past two years, which pulled down prices by as much as 70 percentbetween 2014 and early 2016, when Brent hit a more than a decade low of about $27 a barrel. – Reuters.
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