Oil Commodity Prices Still Under Pressure

U.S. crude oil futures prices closed down at the close of trading Saturday daybreak(09/01), stressed the advantages of global supply and demand prospects are bleak.

ABN Amro cut estimates of Brent and WTI 2016 at a price of $ 50 per barrel from the previous estimate of each for $ 65 and $ 60.

Hans van Cleef, senior Energy Economist at ABN Amro, told the Reuters Global OilForum that is very difficult to estimate the position of the lower price of crude oil.

"Sentiment is still very negative and short position is still on the level of overload. So, the risk of decline still remains. It also makes it difficult to determine the expectedrecovery time. "

Barclays estimates China's oil demand grew 300,000 barrels per day (BPD) in the year 2016, down from an estimated 510,000 barrels per day last year. But the bank expectsimports of crude oil to China will be driven by improvements to the inventory andhigher quotas for oil refinery to import crude oil.

Over the past year, the world has been producing 1.5 million barrels a day more oil than the request. OPEC and the International Energy Agency predicted global demand growth will slow down in 2016 to about 1.20 million-1.25 million barrel per day from a very high 1.8 million barrels per day by 2015.

The price of crude oil futures of West Texas Intermediate (WTI) down 0.33 per cent, or 11 cents, in 33.16 dollar per barrel, down about 10 percent for the week. Had fallen to a session low of $ 32.64, after reaching $ 32.10 per day, the lowest since December 2013.