Friday, November 28, 2014 6:26 am
The worst is not over for crude oil prices. The prices are bound to plunge further after more dismal showing in electronic trading in Asia Friday to get off the low level they sank on Thursday, an expert has predicted.
Daniel Ang, an investment analyst of Phillip Futures in Singapore said: “Prices are likely to be going down for the rest of the year,” he said.
Ang, who closely tracks the oil market, said he expects WTI to end 2014 in the “low 60s” and Brent in the “mid-60s”
“OPEC’s decision to keep output is the main reason for prices to drop quite rapidly,” said And.
Oil extended losses in Asian trade Friday after the OPEC cartel refused to cut production despite a global glut that has sent prices slumping to four-year lows, with analysts warning of further falls to come.
US benchmark West Texas Intermediate (WTI) for January delivery was at $68.08 a barrel in afternoon trade, down 97 cents from its settle price in electronic trading in New York on Thursday. US floor trading was closed due to the Thanksgiving holiday.
Brent crude for January fell 1.31 cents to $71.27.
The Organization of the Petroleum Exporting Countries, which pumps out one-third of the world’s oil, opted to stick by its output target, even after prices have plunged by 35 percent since June.
The 12-nation cartel “decided to maintain the production level of 30 million barrels per day” where it has stood for three years, it said in a communique after a meeting Thursday at its headquarters in Vienna.
Oil prices were routed after the decision was announced, with WTI tanking to $67.75, a level last seen since May 2010, while Brent also plunged to a four-year low of $71.25.