Oil News Update

marketsforu

Oil prices are hovering below the physiological level of $40.00/bbl at $39.10/bbl, the lowest value we have seen since 2009. Looking at technical we can see the rebound is short lived and we can see prices are likely to extend their losses - with analyst expecting prices to go as low as $32/bbl. Looks like there is strong sell momentum currently and due to the supply glut we could see price fall further this week. Tomorrow we should get the weekly US inventory supply which we expect to add further supply to the market. Moreover, due to the slowdown in China recently we could see further demand weaken adding to the pain.