Standard Chartered did not rule out the collapse of oil to $10

Standard Chartered did not rule out the collapse of oil to $10

Moscow. January 12. The price of oil could drop to $10 per barrel in isolation from macro-factors, predict analysts at Standard Chartered.

“Now there are no fundamental factors do not push the market to any balance,” says the review Manager analysis of commodity markets of the Bank Floor Horsnell.

“The oil is almost exclusively dependent on financial flows caused by fluctuations in the prices of other assets”, for example, U.S. dollars and shares, he believes.

In extreme development the price may reach the lower threshold, when all market participants will understand that oil is too cheap. “The price can reach $10 per barrel before most asset managers recognize that the fall has gone too far”, – the report says StanChart.

Meanwhile, the real surplus is less than it seems to the market, as shale oil producers in the US have adapted to worse prices than expected, experts of the Bank.

Oil prices fall for the seventh consecutive day. So, on Monday, Brent crude fell 6%, WTI – by 5.3%. On Tuesday afternoon the prices are a bit downplayed the decrease. The cost of the February futures for Brent crude on London’s ICE Futures exchange to 13:58 MSK rose by $0.23 (0.73 per cent) to $31,78 per barrel. Futures price for WTI crude oil for February in electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,01 (0,03%) – to $31.4 per barrel.

As reported on Tuesday, the oil Minister of Nigeria Emmanuel IBE Cacique, the OPEC countries are considering holding an extraordinary meeting in March, which is planned to discuss the situation with the oil prices.