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Hansen: WTI what next? Forty bucks a barrel?
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With negative pressure piling up on WTI the price looks set to be stuck in the USD 44 to 48 range argues Saxo Bank's Head of Commodity Strategy Ole Hansen, who adds that if the price breaks below USD 44 then he would expect a drop to USD 40; levels not seen for six years.
Saudi Arabian production is at record levels, US inventories are at multi-decade highs and a nuclear deal with Iran could see sanctions lifted and Iranian oil flooding into the market.
All key reasons why the cost of crude is expected to remain low and exert influence over all other asset classes.