Oil prices fell to a 7-year low, no rise in sight

Two months ago and against the general consensus of many experts who were saying that oil prices were stabilizing and could quietly increase from around $50 per barrel to aim $60 in the short term, our team warned that it was premature to expect such a trend reversal after more than a year of an uninterrupted drop. At around $38 now, WTI oil prices confirmed our assumption based on fundamentals which were clearly encouraging a further bearish trend and which are still valid today. The OPEC doesn’t plan to cut its oil production, Gulf monarchies prefer to gain markets shares by building increased production and refining capacities, and the continuing slowdown in Emerging Markets (EM) heralds lengthy era of weak growth. If oil prices may have reached a bottom, there’s no indication yet of stabilization above $50 anytime soon.