Commodity Updates : Crude Oil prices were stable in early trading on today, with world wide oversupply & slowing economic growth assessing on markets but prospects of falling production lending some support. US(United States) Mcx crude futures were trading at USD 38.41 per barrel at 0239 GMT, & went down 10 cents from their last agreement.
But international Brent futures were up 6 cents at USD 40.45 a barrel. While Morgan Stanley told that mcx oil prices had likely bottomed out, it warned that a reducing economy & high production would prevent sharp rises.
“Mcx Oil prices now seem to have bottomed, even though they are likely to stay subdued for the rest of this year before starting to move higher in 2017,” the US bank said, contributing that cheap oil had not provided the economic boost to growth that many had hoped for.
“When mcx oil prices are falling below production costs, the income gains for consumers will be smaller than the costs to producers and falling mcx oil prices become a negative-sum game,” it said.
For 2016 year, the bank told, it was “no longer looking for an acceleration in 2016 GDP growth” and that the risk of a global recession was now 30 per-cent.