Oil market watch
Brent for January delivery was hovering around $53.75/b this morning on London’s ICE. The market is waiting for more direction, say analysts.
Some of it might come from Opec. The group says it wants prices between $70-90/b and will cut again this month and next to get them there. That’s the price Opec president Chakib Khelil will keep developments in places like the oil sands of Canada going ahead.
Petroleum Economist has been making this argument for some time: a true price collapse now means a bigger price shock again in a few years. In November’s leader, we wrote: “Letting the market find its bottom will please Western politicians worried about depression, but it will also leave in place the fundamentals that helped bring about the crisis in the first place.”
