Barry Norman forecasts oil consumption.
Crude Oil added 45 points as traders bought up the cheap commodity taking advantage of low prices and the hopes that OPEC members will cut production now that Iran has returned to the marketplace combating US exports. Brent Oil added $1.08 to 29.64. Crude oil prices continued to be hurt by bearish sentiments across the globe as markets remain nervous as to how low oil prices can go. Besides, the supply side remains intact further exerting downside pressure on oil prices.
Low oil prices, weak investment demand and low physical demand are push factors for gold prices to trade lower while bargain hunting will provide a push for gold prices in the near term.
The EIA (U.S. Energy Information and Administration) had reported that the global crude oil production will rise to 95.9 million barrels per day (MMbpd) in 2016 and 96.7 MMbpd in 2017. The global crude oil production was at 95.7 MMbpd of crude oil in 2015. The global oil consumption is expected to average 95.2 MMbpd in 2016 and 96.6 MMbpd in 2017.
Meanwhile, the JPMorgan Chase and Goldman Sachs suggested that crude oil prices could test $20 per barrel in 2016. Royal Bank of Scotland suggests that crude oil prices could test $16 per barrel, while Standard Chartered suggests that oil prices could hit $10 per barrel in the worst-case scenario.
Source: FX EMPIRE