To: Goose94 who wrote (26503 ) 2/28/2017 6:34:16 PM From: Goose94 Read Replies (1) | Respond to Crude Oil prices faltered on Tuesday on slow but steady gains in U.S. output. The failure to break out of a narrow trading range on the upside has exposed crude to some losses. "Having failed on a couple of occasions to break higher it is only natural to see it correct lower. I'm looking for a retracement to $55 on Brent and $52.70 on WTI,” Saxo Bank head of commodity strategy Ole Hansen told CNBC . 31 oil analysts say oil stays below $60. A Reuters survey of 31 analysts and economists resulted in an average prediction for Brent crude prices in 2017 of $57.52 per barrel, a drop off from its previous survey. The analysts see oil staying below $60 per barrel even if OPEC extended its cuts through the end of the year. "OPEC will extend its deal to limit cumulative supply, probably adjusting the numbers in order to take into account developments about global stock levels and production from non-participating countries," Intesa SanPaolo analyst Daniela Corsini told Reuters . "We expect crude markets will be in deficit in the first three quarters of 2017 and then they could swing into a small surplus in the fourth quarter amid rising non-OPEC supply," Corsini added. Investors betting on rising prices, but downside risk remains. Hedge funds and other money managers continue to ratchet up their bullish bets on crude oil, taking net-long positions to another record high. Meanwhile, oil producers have been increasing their hedges, fearing another downturn. "I’m looking for prices to rise this year, but not above $60, and the reason for the ceiling is the tremendous resilience of U.S. shale," Tamar Essner, an energy analyst at Nasdaq Inc., told Bloomberg . "The market is very one-sided right now, which makes me nervous because that often precedes a reversal."
