Australian Investment Blog

Morning Report 01/02/2016

Morning Report Monday 1st February 2016

Why Market Matter believes oil can reach $US60/barrel

Since the start of 2016 crude oil has plummeted under its 2008 GFC ‘Lehman's crisis’ lows; actually falling over 75% from the highs of 2014! At the end of 2015 OPEC's talks concerning limiting oil production collapsed, basically leading to the 13 members pumping unlimited oil until further notice. With oil prices at current levels, only 11 of the 13 OPEC players can "balance their economic books". It should also be remembered that of the top 3 global oil producers only Saudi Arabia is in OPEC with Russia and the USA standing alone. Technically, Market Matters believes oil can retrace up to the $US60/barrel area although it is the fundamentals that are clearly a huge influencer at present.

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