Oil price decline not over yet, says Credit Suisse

Oil price decline not over yet, says Credit Suisse
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KUALA LUMPUR (Dec 29): Brent crude oil prices, which have been on a decline for several months now, have not witnessed the end of the decline, according to strategists at Credit Suisse.

In a report on Wednesday (Dec 28), they said, “The market remains well below its 55-Day Moving Average and 200DMA at US$89.01 and US$100.67, and with medium-term momentum declining and global growth concerns looming, we think further weakness is likely to follow.

“Brent is likely in due course to see further downside towards the 61.8% retracement at US$63.02, where we would have higher confidence of a more stable floor and for a consolidation phase to emerge.

“Only a move above the 200DMA and the downtrend from the 2022 peak at US$100.67/US$102.13 would see scope to stabilise the market and challenge our bearish outlook,” they said.

At the time of writing, Brent crude dipped 1.27% or US$1.07 to US$83.26.