Oil price analysis
The defeat of prices is a result of huge production, which quickly filled continental warehouses, some analysts believe that this will be completed in early 2016
Australian bank ANZ said on Friday that “the crude oil market will remain subdued in 2016, although the prospects for recovery look good for the second half of the year.”
US bank Jefferies did say that “excess reserves is likely to increase significantly in the first half of 2016 and will depress oil prices in the short term.”
Increasing production from Iraq, which is a member of OPEC contributes significantly to this excess, the yield has doubled in the last decade to about 4.3 million. Barrels per day, which is more than enough to meet the daily demand of India.
OPEC as a whole has produced more oil in November than any month since 2008, although the organization predicts a slight increase in demand for crude next year in an attempt to protect their market share.
The strategy of the cartel to protect market share, pumping record levels, perhaps working.
It expected US oil shale production, the main driver of growth in supplies outside OPEC to lower for the ninth consecutive month in January, according to a forecast Monday by the US Energy Information Administration.