TAIPEI CITY, Taiwan, November 28, 2018 (Newswire.com) - Analysts at Evans Chamberlain Asset Management say next year could be a tumultuous one for the oil market with an anticipated surge in supply surplus and persisting uncertainty about the outlook for the global economy.
Although OPEC (The Organization of the Petroleum Exporting Countries) is expected to implement production curbs after it meets early next month, Evans Chamberlain Asset Management analysts say this may not be enough to offset the negative sentiment about the oil market’s prospects.
In China, one of the world’s biggest consumers of oil, crude inventory rose by more than 400% in a month. Evans Chamberlain Asset Management analysts attribute the dramatic increase to rising imports coupled with reduced refinery activity.
Although the Chinese government does not publicize information on the country’s crude inventories, analysts are able to use official production and import data to gauge the country’s stockpile levels.
Last month, India’s oil imports reached a seven-year-high when the country imported 1.02 million tons of crude. This was 10.5 percent more than the amount imported in October last year.
India was one of the few countries that won waivers from the US government that would allow it to continue to import oil from Iran in spite of US imposed sanctions.
Last week, oil prices plunged by nearly 8 percent on what is being referred to as Black Friday and only managed to make up a portion of those losses on Monday with the price of Brent crude failing to exceed the $60 per barrel mark.
Source: Evans Chamberlain Asset Management