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19 May 2015
Survivors of WTI between at $50-$60 - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman noted the conditions surrounding the price of oil.
Key Quotes:
"OPEC must surely be happy with the recent rebound in oil prices."
"However, we question how much further oil prices can rebound when OPEC and non-OPEC output is still increasing, even as global growth still appears to be slowing."
"For now, disaster scenarios for countries such as Venezuela or Russia have moved back into the realm of tail risk."
"Most of the weaker sovereigns (as well as many shale producers) can likely survive with WTI oil in the range of $50-60 per barrel. But it’s clear that the heady days remain long gone, and that oil producers (and commodity exporters in general) will have to adapt to this new normal."
Key Quotes:
"OPEC must surely be happy with the recent rebound in oil prices."
"However, we question how much further oil prices can rebound when OPEC and non-OPEC output is still increasing, even as global growth still appears to be slowing."
"For now, disaster scenarios for countries such as Venezuela or Russia have moved back into the realm of tail risk."
"Most of the weaker sovereigns (as well as many shale producers) can likely survive with WTI oil in the range of $50-60 per barrel. But it’s clear that the heady days remain long gone, and that oil producers (and commodity exporters in general) will have to adapt to this new normal."