Thursday, 12 February 2015 04:54

Crude oil is down after a record US crude stocks. Brent is now below $55


960694 70065624According to several news channels, oil prices continued to fall today and fell with as much as 3 percent on Wednesday, after U.S stockpiles hit some record highs.

According to analysts and traders, the market could very well shed more of the rebound seen over the past two weeks.

Gene McGillian, senior analyst at Tradition Energy in Stamford, cT expains: "It proves that the price retracement wehad on the captial expenditure cuts and falling rig counts may have been premature".

Several energy firms has slashed billions of dollars from their oil exploration budgets after crude prices fell to half their June peaks.

Brent Oil LCOc1 fell below the $55-a barrel-support, settling down $1.77, or 3 percent, at $54.66. US crude cLc1 closed down $1.17, or about 2 percent, at $48.84

According to investment bank Goldman Sachs, one of the oil market's most influential voices, reiterated its view that lower prices were needed over the coming quarters to force a slowdown in the US crude.

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