OIL: Spot WTI crude oil futures for Mar '14 delivery last down $0.30 at $97.11
per barrel, after a $97.01 to $97.19 range in Asia today with volumes very light
and bid/offers thin, and the market is expected to remain so into the FOMC.
PIMCO's Greg E. Sharenow put out an article on their website ("2014 Oil Outlook:
How Slick Is the Oil Slope") earlier this morning regarding the outlook for oil,
with the main points being "1) While the supply outlook tilts the balances
toward bearish in 2014, an improving global economy is a positive for oil demand
and a support for prices, 2) With roll yields positively contributing to
returns, investors ultimately could be paid to hold a security that hedges both
global event risk and any resulting shock to inflation, and 3) Growth in shale
oil has been a powerful moderating force for prices by both filling an important
gap in global supply and demand and by anchoring the back end of the futures
curve." He also points to unrest in Libya, Yemen, Syria and Sudan/South Sudan,
and sanctions on Iran, as recent impediments to supply he notes that these risks
have become more symmetric in terms of supply in 2014.
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