For the fifth straight day sinking oil prices and in the morning hours Wednesday fell for the first time below 50 dollars since April 2009. The clock 08.40 was a moment during the psychologically critical limit, but tilted quickly over again and is in the morning hours and tilts around $ 50.
More analysts pointed uncertainty surrounding figures that US energy authorities announced Wednesday afternoon.
When they come with their weekly statistics on the development of US stockpiles of oil and oil products. Estimates news service Bloomberg have gathered shows that analysts expect that inventories in the US rose by 700,000 barrels to 386.2 million barrels during the week until 2 January.
Aftenposten reported Tuesday about sales boom of big cars USA after the low oil price has led to lower gasoline prices than ever.
We have to go back to the aftermath of the financial crisis, in April 2009, to find oil prices at the level we see now, writes Bloomberg.
For high production
So far this year, Brent oil from the North Sea declined by over 12 percent.
The main reason for the violent fall in oil prices is that production in several important oil countries are currently very high. Production in Russia in December was at its highest since the collapse of the Soviet Union and Iraq was at its highest since the 80s, according to Reuters.
Most analysts are perplexed how far down the price of oil may fall, according Bloomberg Tuesday.
– We have a global surplus of oil. This has characterized the market in recent months and is still the dominant characteristic of the market, says oil analyst Gene McGillian the American news agency.
The fall the last six months was reinforced when the oil-exporting countries participating in OPEC organization in November failed to agree to cut its oil production to slow the fall in prices.
Can continue to fall
Several analysts Nettavisen spoke with say that it does not currently seem to be no bottom for oil prices.
– There is no bottom in oil prices in the very short image. Most oil companies still have lower operating costs than the price of oil and the cost is also locked anyway, so this is a power play more than a marginal cost logic in the short term, said Jarand Rystad in Rystad Energy Nettavisen Tuesday.
Nordea oil analyst Thina Margrethe Saltvedt notes that uncertainty reinforces the fall.
– As long as we do not see any improvement in the physical market balance which in turn gives confidence to investors or buy signal so oil prices continue to fall, she says to the same newspaper.
She adds that we have not yet seen signs that production slows up enough to balance the market.
– But we have seen the first signs that the US is lagging pace by number of rigs in use and new drilling permits have fallen. Uncertainty is very high to developments in the oil market and price has led many selling out of oil at the moment and this reinforces the fall, said Saltvedt on.
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