Mubasher: Global oil prices resumed their downward trend in Monday’s early trading at Asian bourses, amid a lack of confidence among traders and expectations of more price declines.
Brent crude dipped by 2.01% to $32.96 per barrel, and US crude fell 2.01% to $32.43 per barrel.
A report by Goldman Sachs Bank expected that oil prices are likely to move down to $20 a barrel during the next five years.
“The reluctance of traders and the absence of confidence are behind the declines we see now,” oil analyst, Ahmed Hassan Karam, told Mubasher.
Oil prices fell more than 10% in the first week in the New Year.
“The low production of shale and the heavy losses suffered by US companies will help oil prices to recover gradually, but that will happen in the second half of the year,” Karam explained.
He also projected that US shale production will decrease by 116,000 barrels to 4.861 million barrels per day in the current month.US Shale sector was under great pressure with the continuing drop in oil prices.
Meanwhile, higher gold prices remain limited, according to metal markets analyst, Rajab Hamed.
Hamed said that gold will target the level of $1,118 per ounce, after breaking the level of $1,110 per ounce.
