Oil Sinks After Cap Deal Falls Through
Talks aimed at capping production among the big oil-producing nations fell through Monday, pushing oil prices down even further and leaving investors unsure about the future.
Hope that producers would limit output through a deal was the main driver for US oil prices surging 60% from their February 13-year lows, the Wall Street Journal reports.
With the biggest catalyst of hope out the window, investors say other factors will drive oil’s future, but they will be slow-moving and not able to quickly help in the short term.
“It’s not going to be one big event” that moves oil prices from current levels, says Cohen & Steers portfolio manager Nick Koutsoftas, who helps oversee $558M in commodity investments. (As for how the oil turmoil affects commercial real estate, Reis economist Barbara Denham gave some insight in an exclusive last week.)
Koutsoftas says he expects oil to trade between $30 and $40 a barrel through 2016. [WSJ]
