Oil can slide to $38-39/barrel, downside limited: Energy Aspects

Asserting that the downside for crude oil is limited in the current environment, Energy Aspects expects that oil prices can fall to USD 38-39 per barrel levels.

There’s been a big risk of trade in crude oil, mainly because of oversupply of products in the market which is prompting refineries to cut back on crude processing, said Amrita Sen, Chief Oil Analyst, Energy Aspects.  Going ahead, the upside to oil is very high given that fundamentals are strong, she said.

“We could see prices sub-USD 40 per barrel levels, but anything under USD 50 per barrel isn’t sustainable,” Sen said. From a positioning point of view prices can go to USD38-39 per barrel, but the downside to it is very limited, she added.Watch video for more...