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16 Dec 2014
Oil continues to top the headlines – Danske
FXStreet (Barcelona) - The Danske Bank Research Team notes that the fast decline in oil continued to attract headlines as Brent fell yesterday below $61/bbl.
Key Quotes
“The fast decline in the oil price continues to top the headlines as Brent tumbled another USD2/bbl yesterday and fell below USD61/bbl. The main driver yesterday were the comments from UAE energy minister, Mazrouei, putting blame on US shale producers for the recent slide in the oil price and further dismissing a cut in OPEC production.”
“News from Canada that the heavy oil-sands production is projected to continue surging next year further weighed on prices.”
“The plummeting oil price is a pain for large oil-producing countries. This point was highlighted by the unprecedented move by the Russian Central Bank (CBR) last night to hike its key interest rate by 650bp to 17%.”
“The hike comes after the rouble on Monday saw its biggest one-day decline since the Russian crisis in 1998 and in our view is a clear signal that the CBR is now thinking that the sell-off in the rouble is threatening financial stability. However, the CBR is also likely to react to mounting political pressures to act to curb the rouble sell-off.”
Key Quotes
“The fast decline in the oil price continues to top the headlines as Brent tumbled another USD2/bbl yesterday and fell below USD61/bbl. The main driver yesterday were the comments from UAE energy minister, Mazrouei, putting blame on US shale producers for the recent slide in the oil price and further dismissing a cut in OPEC production.”
“News from Canada that the heavy oil-sands production is projected to continue surging next year further weighed on prices.”
“The plummeting oil price is a pain for large oil-producing countries. This point was highlighted by the unprecedented move by the Russian Central Bank (CBR) last night to hike its key interest rate by 650bp to 17%.”
“The hike comes after the rouble on Monday saw its biggest one-day decline since the Russian crisis in 1998 and in our view is a clear signal that the CBR is now thinking that the sell-off in the rouble is threatening financial stability. However, the CBR is also likely to react to mounting political pressures to act to curb the rouble sell-off.”