As one of Europe's leading independent financial advisory firms, at Sampson Financial Management it is our goal to offer our clients services to expatriates and international workers from all over the world. Each of our clients has unique requirements and we tailor their investments to suit their own personal needs and objectives.

Sampson Financial 2nd December 2014 - Oil Prices on the Rise?

The price of oil finally turned around on Monday as prices were seen to increase by up to 5%.

Brent, which was staying at near 5yr lows managed a peak of $72.73 yesterday but ended up $2.35 at just $72.54 per barrel. Brent had recently seen lows of $70, its lowest since July 2009.

US Crude faired the same and continued to over 5% higher by close of trading. After hitting a 4yr low of $63.72 it broke through the $69.00 showing a 4% gain on the day.

Last week OPEC announced that it would not be cutting its production. This news was not very well received by several of OPEC's members and it can be noted that only Qatar can see the price of oil in this range, its other members all require far higher prices per barrel.

There are also concerns that the recent glut on Shale Gas in the US, which has been quoted as the main reason for the drop in oil prices, could be facing a slow down. There has been a reduction in the new drilling permits for next year and Shale Gas companies are already reporting higher production costs.

With OPEC's goal of $100 per barrel looking a distant pipedream, whether speculators will push the price per barrel up over the next few months based solely off of the slack being seen in the US Shale program is yet to be seen.

With oil being as low as it has over the latter half of this year there have been many benefactors and there is every chance that company earnings for the final quarter of 2014 should show some significant correlation when they are announced early next year.

For more information on the services provided by Sampson Financial Management please visit our website at www.sampsonfinancialmanagement.com or contact us on info@sampsonfinancialmanagement.com.

DISCLAIMER The views, opinions, findings, and conclusions or recommendations expressed on this service are those of the author(s) and do not necessarily reflect the views of the Sampson Financial Management. All market data within this release is for your general information and enjoys indicative status only. Sampson Financial Management does not accept any responsibility for its accuracy or for any use to which it may be put. All share prices and market indexes delayed at least 15 minutes. 52 week high and low values are calculated from close price data.


Contact
Sampson Financial Management