Oil price may drop another $20 by the end of Q2

Chairman of the Facts Global Energy consultancy revealed the figures to delegates at AOGC 2015

Oil prices, trading around $67 per barrel, could drop another $10-20/b by the end of the second quarter this year, Fereidun Fesharaki, chairman of consultancy Facts Global Energy (FGE), told delegates to AOGC 2015. During his Crystal Ball presentation, Fesharaki said there has been no demand response yet and that production of oil is still much larger than the market can absorb.  Inventories continue to fill up, while traders are holding long positions in the paper markets, which are very nebulous and could easily be easily triggered into liquidation. But “you need a trigger and when it comes, there will be a drop in the price of oil anywhere between $10-20. Now what the trigger is I don’t k