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Global Oil Supply Too Large, Brent Trading at 48 per Barrel

On Friday, the global oil prices have decreased some more. October’s Brent oil futures on London’s Stockmarket ICE Futures decreased by $0,08 (0,16%), comprising $48,00 per barrel, according to Bloomberg

October WTI oil futures price fell by $0,94 (2,05%) and are set at $44,98 per barrel now.

Since the beginning of the week, Brent price lowered by 1,6%; WTI — by 0,8%.

Oil prices for the last three weeks have been showing an inconsistent dynamic because the fears regarding China’s economy raise questions about oil’s global demand. Meanwhile, Iran’s possible nuclear settlement may significantly raise the global oil supply. Oil quotas have lowered by approximately 25% from this year’s peak marks.

While the Goldman Sachs Group representatives say the global surplus of oil is even bigger than they could have thought and that could drive oil prices as low as $20 a barrel. These expectations are even more fueled by Russia’s blunt refusal to join forces with OPEC cut the global oil production.

By Nino Gojiashvili
Editor. Covers Turkish, Russian and Eurasian business and economic news.
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