What’s happened with Brent?: Brent prices slumped ~40% from a June peak of ~$115/bbl. Fundamentally, the downward pressure on oil prices relates to the current demand/supply imbalance caused by a lack of synchronised global growth, higher inventory levels and increased shale production in the US, which is reducing fixed input costs for energy. On the supply side, US producers continue to increase production, which has resulted in an oversupply of light sweet crude in the Atlantic Basin, leaving a structural overhang of ~2mbd.
For full article……………….KWS Market Update – Energy Sector Review 03.12.2014
