The bullish rally fell nearly $90.47, settling at 7.3% away from the $84.32 yearly low established on February 15. In Brent?s case, the price per barrel indicates a minimum intraday trading amount of $102.28, although later it recorded losses of $105. This quote places it at 12.6% of 2011 lows of $93.33 per barrel that were set on January 7. Just a few days ago, analysts from Ecotrader warned that crude oil was giving clear bearish symbols and was establishing prices in the $90-84 range.
These are supports to watch close in the WTX. On Thursday of last week, the International Energy Agency gave an unexpected decision and freed 60 million barrels. This only helped transmit anxiety in the markets, which was translated into profits that are affecting other economic activities, such as gold.
Oil profits not hurting much
In any case, the crude correction is not reflected in forecasted profits that are driving analysts for the major petroleum companies in the industry. If June 14 is the reference date (when Brent began to cut profits, it is obvious that only one company among 20 of the most capitalized (the Australian Wood-side Petroleum) has suffered a significant loss. Their estimated profits dropped 12% during 2011. Following them was the American company Apache, who saw 4% cuts.
Others hardly see any changes, which could be interpreted as a sign that analysts are still betting that petroleum will spike in months ahead. It worth remembering that since one month ago Goldman Sachs said that crude will rise $130 in a year. It should be remembered that we are beginning the hurricane and tropical storm season that will affect various oil-producing countries, who normally produce supply cuts that are translated.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
