Oil prices under renewed selling pressure – Rabobank

By FXStreet FXStreet (Delhi) – Research Team at Rabobank, suggests that oil is struggling to hold its 2-week gains and has slid below USD 34 per barrel today well below Monday’s high at USD 36.25.

Key Quotes

“Commodity based currencies are again under pressure with the ruble falling 1.5% against the US dollar and 1.7% vs. the euro in the early hours of trading. While the market remains sensitive to any fresh rumours regarding potential output cuts, the Energy Information Administration weekly report due Wednesday is expected to show further increase in inventories, according to a Bloomberg survey.

In the meantime, Standard & Poor’s downgraded Royal Dutch Shell Plc by one notch to A+ and placed it on watch for another possible reduction. The S&P’s also warned that most oil companies will not be able to offset the 52% average price fall in 2015 by cutting cost and spending. Consequently, the ratings agency sees “significant likelihood” of one notch downgrades for several European oil companies.”
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Source:: FX Street