2014.08.2209:49:00UTC+00Weekly Outlook for Crude Oil Prices

Quotes from Commerzbank Corporates & Markets:

-The downturn on the oil market continued this week: At USD 101, a barrel of Brent temporarily traded at its cheapest levels since June 2013. Downward pressure on prices came mainly from speculative investors, who reduced their net long positions by nearly 70% over the six weeks to mid-August, according to ICE. These positions should now be at their lowest since summer 2012.

-That said, the exit of financial investors is probably largely concluded, and the price of Brent has probably touched bottom. But we believe the time for a price rally has not yet come. Estimates by the Reuters and Bloomberg will probably show that OPEC countries expanded production in August.

-According to latest reports, Libya currently produces over 560,000 barrels of crude oil per day, i.e. 160,000 barrels per day more than the July average. As a result, market supply probably remains ample for the time being.