Long-term crude prices are falling fast, with June 2017 futures (Nymex Light Crude – CLM2017) having broken through its medium-term target of $50/barrel*.
* Target calculation: 56 – ( 60 – 54 ) = 50
The August 2015 Report from the International Energy Agency indicates that oversupply is growing. After the latest market turmoil, IEA estimates of global demand are also likely to be revised downward. Maybe that long-term target of $36/barrel** is not so crazy after all.
**Long-term target: 66 – ( 90 – 60 ) = 36