Those for West Texas Intermediate were expected to be two dollars per barrel below those for Brent in 2016 and three dollars beneath Brent in the following year.
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Futures dropped as much as 1.9% in London and traded at the biggest discount to USA prices in about a year.
Oil prices attempted to recover Wednesday from a seven session losing streak that sent prices to their lowest levels in more than 12 years, as US government data showed that supplies of crude and crude products climbed last week.
“Let’s not forget that a year and a half ago, I said that we were probably going to get to the mid $30s when crude oil prices were trading at $125 per barrel”, he said on CNBC’s “Fast Money” on Monday.
China seized the chance to add up to 147 million barrels to its reserves in the first eleven months of 2015, according to Reuters calculations, following a more than 50 per cent slump in oil prices since mid-2014.
The CBOE Crude Oil Volatility Index, a gauge of anticipated swings in USA crude prices, rose Tuesday to the highest since 2009.
“We see a bounce off here… but a change in trend is not visible yet”, he said. The valuation score determines if a stock is attractively valued or not, also based on historical numbers.
He said current market conditions create the need to hold such a meeting.
The EIA cut its 2016 forecast for WTI by 24 percent to $38.54 a barrel, according to its monthly Short-Term Energy Outlook Tuesday.
Analysts at Morgan Stanley also warned that a rise in demand for crude could be lower than previously expected. “This could put substantial further pressure on oil prices”, Macaluso said.
Oil-reliant OPEC member Nigeria on Tuesday called for an emergency meeting of the cartel to address collapsing prices, which have rattled world stock markets and hammered energy firms.
China’s exports rose 2.3% in December from a year earlier in yuan terms, after a drop of 3.7% in November, data from the General Administration of Customs showed Wednesday.
A US oil industry trade group has said low oil prices are already cutting investment in production facilities, and that will eventually crimp output.
And, because oil is priced in dollars, the stronger American currency is making oil more expensive to buyers holding other currencies.
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This suggests very sluggish consumption in the United States, the world’s top oil consuming nation.
