SINGAPORE . Oil producing countries belonging to the Organization of Petroleum Exporting Countries ( OPEC ) is predicted to be acting , if oil prices continue to sag .
Gordon Kwan , head of energy research from Mirae Asset Securities Hong Kong Ltd. . calls , OPEC will probably cut its oil production , if Brent oil fell to touch U.S. $ 90 per barrel .
That is why , according to Kwan , the oil price collapse will not repeat that once took place in 2008. At that time, Brent oil slid to U.S. $ 40 per barrel from its peak at U.S. $ 147.50 per barrel .
" Producers in the Middle East want a minimum price of around U.S. $ 90 per barrel to balance their national budgets , " he said in research released today .
Kwan continued , the EU embargo -related imports of Iranian crude oil supplies could eliminate as many as 1 million barrels per day .
He was convinced , at this time , the oil is extremely oversold ( oversold ) . Therefore, he suggested the long-term investor to take advantage of selling futures contracts that took place lately .
For the record , Brent crude oil for July delivery rose 0.5 % to U.S. $ 101.18 per barrel today . Earlier , on June 1 , the price had touched U.S. $ 98.43 per barrel . That's the lowest level since January 2011 (Kompas.com).
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