No End in Sight to Oil Glut, Causing Further Declines

There appears to be no end in sight for the declines currently affected the oil market as prices continue to reach new low levels unseen in five years.

According to Bloomberg:

Oil’s collapse has been so rapid and so driven by sentiment that forecasters from Bank of America Corp. to UBS AG say there are no clear signs of when the rout will end. The U.S. is pumping the most crude in more than three decades as horizontal drilling and hydraulic fracturing unlock shale reserves, adding to a global supply glut that Qatar estimates at 2 million barrels a day.

Helima Croft, chief commodities strategist at RBC Capital told Bloomberg:

The Saudis are providing no support for the market. It looks like they will let prices continue to fall, taking as much non-OPEC production offline as possible.

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