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Crude Oil Prices Could Drop by 30% – Classiarius Viewpoints

Crude Oil Prices Could Drop by 40% - Classiarius Viewpoints

Our team has recently focused on technical analysis and increased production of crude driven by geopolitics and we are, as a result, very bearish crude oil. Please read below. 

While countries like Venezuela and Iran struggle with global access and market share for oil products, the US pumped 11.6 million barrels of Oil last week, making it largest oil producer, surpassing  both Saudi Arabia and Russia. The US and Saudi Arabia are now jointly selling more oil, to collapse prices, in the words of some analysts. Now the Saudis, Russia and the US combine to pump 40 precent of the global market needs. Russia and Saudi Arabia ramped up production ahead of the expected US sanction on Iranian crude Oil which took effect this week.

The US was expected to produce enough crude to become number one by Q1 of 2019, but obviously become number one as production surged. US production was a shocking 2 million barrels  a day higher this month versus the same time one year ago.

The speed of increased production was underscored by the 400,000 barrel a day increase from a week ago. Next year at this time, production is likely to be, according to analysts, 12.1 million barrels per day. 

We at Classiarius are looking for oil prices to collapse in the next 6 months as the US, Russia and Saudi Arabia pump more crude and driver prices much lower. Look for more comments from our team in the coming weeks and months. 

The tend in lower oil prices could be one of the best trends of the year for 2019 especially as more and more developing countries see crude exports as the only way to avoid a budget deficit. Iran and Venezuela will be struggling in the coming year as they might be squeezed out of markets as buyers shift to other supplies like the US and Saudi Arabia. 

Team Classiarius 

Classiarius

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Disclaimer: We do not provide investment advice or strategies, this article is not intended as such but only to provide you the reader with information. Please conduct your own research before any investment of any kind.

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