OctaFX | OctaFX Forex Broker
Open trading account

Oil: Saudi Arabia could send WTI to the $20s – TDS

The Russian's have walked away from OPEC and set their sights on harming the US shale industry, prompting Saudi Arabia to retaliate with an all out price war. The large crude oil price correction over the weekend is likely only the beginning of a continued rout, according to analysts at TD Securities.

Key quotes

“It seems likely this price war could drag into the second half of this year, as both Saudi Arabia and Russia can withstand a negative price environment for some time.” 

“Given the weak state of demand, our model suggests that if Saudi Arabia lifts production by 1.2 million b/d to roughly 11 million b/d, the world would see inventories grow by some 225 million bbls for the remainder of this year.”

“WTI and Brent prices could easily remain in the $30s or even drop into the $20s if Saudi Arabia pumps out crude oil at the maximum 12 million b/d.”


Slovakia Industrial Output (YoY) increased to -4% in January from previous -7.1%

Slovakia Industrial Output (YoY) increased to -4% in January from previous -7.1%
Read more Previous

Coronavirus update: Italy, S. Korea and Iran report over 7000 cases, China situation improves

According to Reuters, there are over 114,300 coronavirus cases and 4,026 deaths across 112 countries and regions so far this Tuesday. There are now se
Read more Next
Start livechat