Faltering Oil Recovery Prompts Warnings of a Relapse to $40
- SocGen, BNP Paribas, UBS and JBC see risk of renewed decline
- $40 is a ‘floor’ that will trigger bargain-hunting: SocGen
Oil Market Adjusts to Slower Global Demand
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As oil’s upward climb runs out of momentum, more and more analysts expect the market’s next move will be back down toward $40 a barrel.
Brent crude prices almost doubled between January and June, signaling that markets were finally healing as falling U.S. output, rising demand and disruptions from Nigeria to Canada all helped eliminate a global production surplus. Now, as consumption falters and halted supplies return, analysts from BNP Paribas SA to JBC Energy GmbH warn prices may sink once more.