With OPEC showing an unwillingness to cut production to prop up prices, many oil market observers foresee more downside ahead for crude in 2016.
“Low commodities prices and uncertainty about the pace of their recovery will continue to limit exploration and production activity in 2016, leading to spending cuts, stalled production growth and volume declines. And these cuts will in turn lead to lower revenue for drilling and oilfield services companies, which will face persistent equipment overcapacity and need to minimize capital expenditures just to operate near break-even cost levels,” according to a Moody’s Investors Service note posted by Amey Stone of Barron’s.
United States Oil Fund
