21
Jul
Commodities: Oil likely to increase further to US $55
Crude oil price trend reversal likely in the second half of the year. Rise in demand propped up by China and India. Precious and industrial metals to rise in the near future.
Key points
- A rise in US production along with economic disappointments have weighed heavily on crude oil prices
- Trend reversal likely in the second half of the year
- The fall in Saudi currency reserves is bolstering their commitment to supporting prices above US $50
- Global demand will soon outstrip supply, which has been pulled upwards by China and India
- Shale oil is becoming a new swing producer at around US $50
- The drop in inventories is deepening in the USA
- Geopolitical factors have yet to stimulate speculative investment
- Moving towards a new rise in gold and silver
- Positive prospects for industrial metals
