Julius Baer credits strong fluctuations and declines in oil prices as responsible for the downward trend
With a strong fluctuation and decline in oil prices below US$80, the headwinds for the commodity should remain and the trend is for a decline in the coming months. This is the assessment of the Swiss bank Julius Baer, which released a note to customers and the market on the topic this Thursday (23.Nov.2023).
The producing nations, in particular from OPEC (Organization of Petroleum Exporting Countries), postponed the long-awaited meeting, which led to the “drama habitual”according to Norbert Rücker, head of economics and next generation research at Julius Baer, in the report called “drama kings” (kings of drama, in Portuguese).
“Petronations are price makers in the short term, but price takers in the long term. Adjustment to the economic realities of lower prices can be delayed, but not cancelled.”he said, indicating tension in the market, which is currently pessimistic, which would support the risks of contrary movements in the short term, in his view.
With information from Investing Brasil