Oil at $58 in fear trade but expect it to drop to low $40s soon

November 23, 2017 10:37 am

In today’s “Future’s In Focus”, Todd Horwitz, chief strategist at Bubbatrading.com, and Bloomberg’s Vonnie Quinn examine the oil market. They speak on “Bloomberg Markets.”

OPEC oil prices on capital markets are going through a fear trade, fear of what’s going on in the Middle East, and in Saudi, said Horwitz.

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He added that oil premiums are very narrow going into the future, so while there is a push to bring oil prices up, there is already a 200 year supply in the US, so no wiggle room for prices.

“There is a better chances for oil prices trading in the low 40s than in the upper 50s it is today, at nearly $58 a barrel. I see no reason for prices to go any higher,” he said.

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“Rigs are back in the field pumping like crazy at these levels, but when Christmas is over we will see pressures on oil again.”

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AMEinfo Staff
By AMEinfo Staff
AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.