Oil Prices Outlook For 2016

The Analyst said, "the first half of the year 2016 is the worst moment for the oil price".While the expected price recovery to 60 u.s. dollars per barrel, a new possibility to take place by the end of next year. The following words of the leadership of McGraw Hill Financial, John Kingston, "you will see the price (of oil) in the range of USD 20before boarding".

Those comments followed a drop in Kingston called oil futures after u.s. Governmentdata showed an unexpected oil Stockpiling and no slowing production at the end ofthis year. The weekly report from the Energy Information Administation (EIA) showeda jump in 1.6 million barrels of u.s. oil supplies become 487.4 million barrels whenanalysts estimate the reduction occurred. Last week, the reserves in the United Statesdrastically reduced 6 million barrels.

Today, oil of West Texas Intermediate (WTI) and Brent traded flat, each in the range of36.71 and 36.66 Dollars per barrel. Last night, both the oil price benchmark shrinkmore than 3 percent.

Kingston's view On Oil Projections 2016

Quoted from CNBC, Kingston argued that next year oil outlook still weak by lookinghistorically, demand for the first quarter were lower than in the fourth quarter. There was disaster for the supply side because oil production from Iran can enter theinternational market after the sanctions against them. Long-term production growth,shale will change your views on energy markets significantly.

The Kingdom Of Saudi Arabia Refused A Reduction In Oil Production

Saudi Arabia is the de facto leader as world oil cartel OPEC, refused to reduce supplyand even make improvements to production. Saudi hopes low rates will hamperdrilling for oil shale to high-cost rivals, but in fact they are more resilient thanestimated. Although the number of active U.S. rigs had fallen more than 60 percent this year, production in these countries remain above the level of 9 million barrels per day, because the remaining drilling wells have increased efficiency.

Riyadh has also felt the pressure of lower oil prices. The Kingdom of Saudi Arabiareported a deficit of 15 percent last year and started some substantial tightening.Nevertheless, the officials Saudi Arabia remains committed on their strategy tooverwhelm the supply of oil and continue to expect the market will be stable with the condition of the global economy that is increasingly healthy next year.