Oil Seeps Lower

Oil Seeps Lower

8 December 2015, 03:08
sathish kumar

il prices seeped to their lowest level in over 6 years, breaking swing lows as oversupply was confirmed as not being abated any time soon.

OPEC meetings ended with no resolution on production cuts and lacked any reference to output ceilings which was the big kicker in sending Oil to new lows. Other Commodities were also prominent in the overnight news cycle, with major Australian export Iron Ore falling to lows, and now trading with a $30 handle next to its name.

Those break-even prices continue to slip further and further away for many of the mid to smaller miners… well anyone not named BHP or Rio Tinto really. When the smaller end of town is forced out of the market, the supply side of the equation will come back into play and could send the Aussie higher

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