Crude oil's upside limited, downside risk exists

Petronas CEO warns crude oil's upside limited, downside risk exists:

"Higher crude prices have lured American shale oil producers to start pumping oil into the market as they climb above the US$45 (RM199.35) level. The additional supply is expected to cap the upside of the fuel price.

Worse still, the prices may even slip below the US$40 level again if Opec and non-Opec members decide not to continue with the production curbs when the agreement lapses by end-June."

“I have my doubts if oil will be as bullish as some people are expecting. There’s a strong production pickup in the market, especially in the US,” he pointed out

Link: www.hellenicshippingnews.com/a-crude-awakening-again/

Personal thot:
Consensous has been bullish on energy stocks but we are not. We will continue to stay out of this sector.

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