Oil prices remained relatively stable in the past few days as WTI oil price has been trading around $93-$94 and Brent oil at $97-$99. United States Oil (USO) is also relatively stable at $34-$35. Looking forward, the latest updates from OPEC and International Energy Agency provide some additional information regarding the progress in the global oil market.
In the past few weeks, Brent oil has under-performed WTI oil. Since the beginning of August, the price of Brent oil fell by close to 9% while WTI oil by nearly 6%.
It’s still too early to determine if this spread were to remain at this low level of bounce back. Moreover, the recent news from the IEA states the demand for oil in Europe and China is expected to be lower than previously estimated. As a result, the global demand for oil in 2014 was reduced to 0.9 million barrels of oil per day.
The rest of this analysis is at Seeking Alpha
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