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The Wall Street Journal reported that even though oil prices turned higher Friday, analysts are still skeptical about predicting a turnaround without a cut in production.
The Wall Street Journal reported that even though oil prices moved higher on Friday, analysts are still skeptical about predicting a turnaround without a cut in production.
As quoted in the market news:
Analysts attributed the bounce to technically directed trading as the market recovered from trading below $44 a barrel Thursday and setting a new nearly six-year low at settlement. It also followed announcements by several oil producers—including ConocoPhilipsand Shell—that they would cut exploration and production budgets amid a round of weak earnings. Still, they cautioned that there was little basis for a strong price rebound in the market without more substantive changes to the oversupply situation.
Citigroup analyst Tim Evans stated:
We see ongoing headwinds for oil prices. Optimists may view the price performance in the face of bearish news as an encouraging sign, but we continue to see near-term downside risks.