A 'worrying sign' for oil prices is floating on the Atlantic
There aren't enough buyers for all the crude oil out there.
It's peak season for oil buying, Morgan Stanley's Adam Longson notes in his weekly commentary on Monday, yet there are still a bunch of tankers full of oil sitting in the Atlantic Basin waiting to be sold.
And when it comes to the future of oil prices, this is "a worrying sign for the fall," Longson writes.
Here's Longson (emphasis added):
Longson notes that some oil supplies are being bought only after three months of floating in storage.
These supplies include North Sea oil and Nigerian crude extracted off the West African coast, he writes.
Furthermore, all this oil is weakening the gap between the prices of different grades of crude oil to the lowest level in years.
READ MORE: https://ca.finance.yahoo.com/news/theres-worrying-sign-oil-prices-125928557.html
It's peak season for oil buying, Morgan Stanley's Adam Longson notes in his weekly commentary on Monday, yet there are still a bunch of tankers full of oil sitting in the Atlantic Basin waiting to be sold.
And when it comes to the future of oil prices, this is "a worrying sign for the fall," Longson writes.
Here's Longson (emphasis added):
If there are this many challenged cargoes in this strong demand environment, we worry about the outlook for physical oil this fall when crude runs and gasoline demand fall seasonally. When combined with risk of new supply from Libya and Iran, a more range bound (if not lower), yet volatile, oil price environment seems increasingly likely in 2H15.
These supplies include North Sea oil and Nigerian crude extracted off the West African coast, he writes.
Furthermore, all this oil is weakening the gap between the prices of different grades of crude oil to the lowest level in years.
READ MORE: https://ca.finance.yahoo.com/news/theres-worrying-sign-oil-prices-125928557.html
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