Asset manager MercBloc D. Dicker predicts that rising oil prices just after the inevitable slump to 17-month low.
Another drawdown in oil prices was the result of lower commodity prices in Saudi Arabia. On the Commodity Exchange in New York futures were trading near the level of 90.70 dollars per barrel. Although many experts are predicting a further fall in the background of excess supply and low demand, Dicker optimistic. It is likely that the current situation is formed artificially, given the strong dollar, which hit other currencies and assets. No exception and oil. Increase in the dollar has put further pressure on the black gold. The argument in favor of growth rates can serve as a limited release of this raw material. Of the supporting factors worth considering the problems in Iraq and Libya, Western sanctions against Russia, and the possible epidemic in Nigeria. Thus, the low production potential can be transformed into growth rates.
But on the other hand, it is quite conceivable that Saudi Arabia cut prices for strategic purposes, and this goal – to win new market share …Follow us in social media: