We do feel that the Oil markets will be at risk to volatility as financial markets become more aware over the potentiality of a slowdown in the global economy next year and that a reduction in Oil supply next year would be appropriate with the risks of lower economic growth.
The price of Oil remaining roughly around $70 in Brent Crude and $60 in West Texas Intermediate and consolidating around these levels would be appropriate in the greater scheme of things, considering the ongoing external uncertainties around trade tensions and pressures in emerging markets that are seen as large risks for slowing global growth.
If there are concerns over a potential economic downturn, then it is only natural that there will be concerns over demand for commodities like Oil, which is why its current valuation today can be considered as appropriate for where we currently are with the global economy.
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