OptionRally is expected to release its annual expectations for the oil
sector for 2016 to its investors in the coming month. The report
presents a negative outlook for oil prices, suggesting that investors
should go short on oil at this point.
“We have seen a steep drop in oil prices over the last six months, and I
expect the oil downtrend to continue throughout 2016,” reveals George
Fox, Senior Broker at OptionRally and one of the report’s writers.
“There are numerous factors that are expected to send oil trending
further downward,” explains Fox. “The first factor is China’s slowdown
in production which contributes greatly to a weaker world oil demand.
Normally, a lower demand for oil drives the commodity prices lower,”
states Fox. “Second, we are all aware of the alternative fuel industry
that has gained market share over the last several years. This will
further decrease oil demand and send oil prices down.”
“Another reason for the slump in oil prices is that the U.S. has begun
producing crude (from shale formations) in quantities unseen for two
generations. Moreover, the reduction of U.S.-Iran tensions and the
lifting of economic sanctions on Iran have resulted in Iran restarting
its oil exports, bringing a flood of Iranian oil to an already
oversupplied world market, and we all know the effect that it will have
on oil prices,” says Kramer.
Fox comes from a strong Financial Services background, having worked for
top industry financial firms. In addition to his position as Senior
Broker, Fox will soon start working in the Company’s dealing room as the
Chief Analyst’s right-hand man.
*This item has been prepared solely for information purposes, and is
not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any particular trading
View source version on businesswire.com: http://www.businesswire.com/news/home/20151218005051/en/
Copyright Business Wire 2015
Source: Business Wire
(December 18, 2015 - 3:00 AM EST)
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