Salient to Investors:
Guy Wolf at Marex Spectron Group said short-term the oil market is oversupplied as the Saudis flood the market at a seasonally weak demand period, but Brent crude will rise toward $125 this year as global growth picks up and the market tightens.
Fatih Birol at the International Energy Agency said prices around $110 are possibly the greatest risk to the global economic recovery – it will be a surprise to see prices dropping below this.
Oil in New York has long-term technical support at $89.83, a 50 percent Fibonacci retracement of the drop to $32.40 in December 2008 from an intraday record high of $147.27 in July 2008.
BP estimates the Middle East and North Africa accounted for 36 percent of global production and 52 percent of proven reserves in 2011.
Ric Spooner at CMC Markets said current and forecast future demand levels over the next 12 months are well covered by supply – a driving factor behind the decline in recent weeks.
Read the full article at http://www.bloomberg.com/news/2012-10-05/oil-heads-for-third-weekly-drop-before-u-s-jobs-data.html