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Has Oil Bottomed Out?

March 11, 2016 at 18:53 by Vladimir Vyun

It looks like things are changing for crude oil. While previously market analysts were saying that oversupply would persist, weighing on prices, now some of them have changed their tune. It might mean that prices have bottomed out.

Bulls, which were already bolder due to the recent rally of crude, became even more confident after the report from the International Energy Agency. The agency reported that output is falling from both the Organization of Petroleum Exporting Countries and from non-OPEC producers. Supply from Iran so far was not nearly as big as analysts had expected.

It may be too early to become overly bullish as Goldman Sachs remained bearish on the commodity.

Contract for delivery of WTI crude oil in April rallied 2.35% to $38.73 per barrel as of 18:48 GMT on NYMEX today. Brent crude was up 1.02% to $40.46 per barrel on ICE.

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