Oil glut can drain oil bulls’ purses
More supply is coming on to the oil market, with post-sanctions Iran stepping up production, the US adding drill rigs by seven to 414 according to the last week data from industry group Baker Hughes, Saudi Arabia’s rush for profits and never-ending rivalry between Gulf nations producing oil at almost their full capacity. The chances of an end to unrest in Libya and Nigeria, Venezuelan aspiration to revive its oil production once it manages to recover from its social and economic problems and waning refinery demand for crude oil are adding fuel to the flame. You do not have to be a prophet to expect a drop of oil prices in the forthcoming future.
There is a slight possibility that the 15th International Energy Forum (IEF15) scheduled for the 26-28th of September this year will make any difference to the discernable trend of falling prices in the oil market. Therefore, many analysts have already started to warn oil bulls to be prepared for financial losses.