For next week expect little change in oil prices – forecast
For next week expect little change in oil prices. This forecast is provided to Portnews by Marine Bunker Exchange.
The oil prices in the past have been more or less flat. Oil prices have recently increased too fast and it is considered to be overbought. The increase of WTI is stalling as a technical indicator shows futures have climbed too quickly for further gains to be sustainable. The 14-day relative strength index is higher than 70 for a fourth day on Thursday, which means a reading above that level signals a market is overbought and will probably decline.
The Chinese fuel demand is expected to increase by 4.9 percent this year, equivalent to about 500000.
barrels a day much due to planned investments in infrastructure in China. Oil prices increased yesterday after Germany’s ZEW Center said its index, which tries to predict economy developments six months in advance, jumped to 31.5 from 6.9 december. These are very good numbers from China and Germany, suggesting to economy is about to take off.
In the US the Seaway Pipeline between Cushing and the Gulf Coast still lacks the takeaway capacity to de-bottleneck and increase the capacity from now 175000 barrels a day up to 400000 barrels a day.
It is now expected to take another 4-5 months before the pipeline is in full operation, which will continue to hold back deliveries of crude oil from Cushing down to the Gulf Coast and gap between WTI and Brent Crude oil will continue.
|
Product |
380 cSt HSFO |
380 cSt LSFO |
|
|
|
|
|
Rotterdam 2013-01-24 |
610 |
641 |
|
Rotterdam 2012-01-24 |
663 |
676 |
|
|
|
|
|
Gibraltar 2013-01-24 |
632 |
690 |
|
Gibraltar 2012-01-24 |
682 |
737 |
|
|
|
|
|
St Petersburg 2013-01-24 |
525 |
585 |
|
St Petersburg 2012-01-24 |
415 |
495 |
|
|
|
|
|
Panama Canal 2013-01-24 |
650 |
755 |
|
Panama Canal 2012-01-24 |
690 |
- |
|
|
|
|
|
Busan 2013-01-24 |
653 |
826 |
|
Busan 2012-01-24 |
750 |
- |
|
|
|
|
|
Fujairah 2013-01-24 |
620 |
735 |
|
Fujairah 2012-01-24 |
730 |
- |
All prices stated in USD / Mton
All time high Brent= $147.50 (July 11, 2008)
All time high Light crude (WTI)= $147.27 (July 11, 2008)
|
Product |
Close Jan.23 |
|
Light Crude Oil (WTI) |
$95.23 |
|
Brent Crude Oil |
$112.80 |