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Brent wanton extends rally, though analysts advise prices could drop

SINGAPORE (Reuters) – Brent wanton extended a convene on Tuesday, relocating serve divided from six-year lows strike in January, though some analysts warned that prices had risen too distant and could face a downward correction.

Benchmark Brent wanton futures were trade adult 50 cents during $61.90 a tub by 0420 GMT, while U.S. WTI wanton had risen 26 cents to $53.04 a barrel.

“The new bullishness is not heavily corroborated by technical and elemental analysis, and so should not last,” pronounced Daniel Ang of Singapore-based Phillip Futures.

“The marketplace is removing increasingly indeterminate as to this rally, with a CFTC display that non-commercial net prolonged positions are starting to fall,” ANZ bank pronounced in note.

Analysts also pronounced that downward vigour might come from a polished products marketplace in a subsequent quarter.

“Consensus expects vast register builds and pricing vigour for oil markets in 2015,” Morgan Stanley pronounced on Monday.

Demand for polished oil products has been clever in Asia, that is structurally short, and producers have been holding advantage of low wanton prices to cover themselves with fuel and build adult product inventories.

With Brent prices outperforming U.S. contracts a widespread between a dual benchmarks has risen to roughly $9 a barrel, a top turn given Aug final year, and a trend will continue, analysts said.

“Considerable vigour is expected to build on WTI as inventories proceed a EIA’s 71 million tub operative storage ability figure and we would therefore design a wider WTI/Brent widespread (low double-digit territory),” pronounced JBC Energy.

In line investment, Australia’s Macquarie Group Ltd (MQG.AX) pronounced it was deliberation acquisitions in futures, earthy oil and polished products businesses.

Macquarie’s bound income, currencies and line business now generates about 60 percent of a handling income from commodity markets.

The proclamation comes during a time when many other banks have scaled behind or sole their appetite and line businesses.

(Editing by Michael Perry and Joseph Radford)

Article source: http://in.reuters.com/article/2015/02/17/markets-oil-idINKBN0LK0L920150217

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