Analyst Predicts Boom in Demand, Higher Prices for Oil
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"It's only a matter of time" before spare production from OPEC gets soaked up by developed nations, and oil prices should increase in the second half of the year, according to an analyst at Goldman Sachs.
"As Iranian supplies are increasingly shut out from the market as the sanctions take effect, that surplus is disappearing," said David Greely, head of energy research at the firm.
The price of oil futures sold off last week, with Brent falling well below $110, while WTI futures dipped below $92. The drop in prices was "unwarranted" said Greely.
"Despite the softening in the recent economic data, the recent data on oil market fundamentals shows that the supply-demand balance has begun to tighten once again."
Common ETFs used when trading oil include: United States Oil (NYSE: USO), iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL), and United States Brent Oil (NYSE: BNO).
"As Iranian supplies are increasingly shut out from the market as the sanctions take effect, that surplus is disappearing," said David Greely, head of energy research at the firm.
The price of oil futures sold off last week, with Brent falling well below $110, while WTI futures dipped below $92. The drop in prices was "unwarranted" said Greely.
"Despite the softening in the recent economic data, the recent data on oil market fundamentals shows that the supply-demand balance has begun to tighten once again."
Common ETFs used when trading oil include: United States Oil (NYSE: USO), iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL), and United States Brent Oil (NYSE: BNO).
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