Oil prices dropped again on Thursday due to record amounts in storage, and a confirmation from Goldman Sachs that they expect prices to stay low and volatile for the rest of 2016.
Brent crude futures fell 40 cents to $30.44, after rising slightly last week on hope of an OPEC agreement. WTI crude futures were back down almost to the low hit in January, which was its lowest point since 2003.
The oil markets are now coming to the end of their peak season, whereby consumers stock up for winter heating, putting further pressure on a market where demand already significantly outstrips supply. Producers have become more and more open to accepting low prices to obtain market share, wit hIran offering discounted oil to Asian markets to undercut rival Saudi Arabia.
It is likely that concerns over China will continue to weigh on the market for the rest of this year, with supply still increasing exponentially against demand.
11/02/2016
