The crude oil prices recovered part of the decline from the previous days on Thursday. The experts rely on too strong decline in the last trading days and believe that this is a technical reaction. On 7th January 2014 the futures price of Brent crude oil for February delivery fell temporarily below 50 USD per barrel for the first time since May 2009. In the morning hours today one barrel (159 liters) of Brent crude for February delivery was worth 51.27 USD – 12 cents above the price on Wednesday. The price for the American variety West Texas Intermediate (WTI) jumped with 25 cents to 48.90 USD per barrel.
Recent trends in oil stocks in the US also boosted raw material prices. In the largest economy in the world stocks of crude oil reported a surprise drop. This may be a sign of increased demand. Since the summer of 2014, oil prices plunged more than 50% due to excess supply in the global market.
Meanwhile it became clear that the experts of Bank of America Merrill Lynch expected in the near future oil price of Brent to fall to 40 USD per barrel, while US light WTI oil could reach 35 USD per barrel. The analysts report that a sharp price drop will not leave any choice of major exporters, such as Saudi Arabia, but to reduce the yield. According to them is likely and exporters outside OPEC to proceed with cuts in production.