Coffee Sipping Big Board Stocks

[EZ2]

I guess this falls under the column heading of: FWIW

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BMO Says Recent Crude Prices Not Sustainable In Long Term, But Recommends Clients Keep to Sidelines Near Term

MIDNIGHT TRADER 9:46 AM ET 11/28/14


09:46 AM EST, 11/28/2014 (MT Newswires) -- Analysts at BMO Capital Markets said the oil prices being recorded for Brent and West Texas Intermediate crude oil following sharp recent declines aren't sustainable over the longer term, but it recommended that clients remain on the sidelines in the near term as the market continues to react to the Thursday decision of the Organization of Petroleum Exporting Countries to leave its output target unchanged.

Recently Friday, crude-futures were down about 6.1% to $69.18 per barrel, trading near a four-year low.

In giving the recommendation in a note issued to clients Friday, BMO said: "December is not expected to offer much of a respite from the selling. Better opportunities are likely to emerge in the new year, in our view."

The firm said it expects Brent crude oil prices to test the $70-per-barrel level and West Texas Intermediate to test the mid-$60s per barrel over the coming weeks, as the speculative long position in crude oil continues to be unwound.

The note continued: "We do not believe that oil prices are sustainable at these levels longer term as the non-OPEC industry is very clearly built on expectations of oil prices greater than $80/bbl; however, until economic growth improves outside of the U.S. and/or supply falls we do not see the sell-off abating."

The firm noted that while the outcome from Thursday's OPEC meeting was largely expected by the market, the lack of any reassurance that the group would consider reconvening for a special meeting before June signaled that Saudi Arabia and Kuwait "are not prepared to accommodate more hawkish members of the cartel (or Russia) and instead tolerate lower oil prices."

Price: 26.41, Change: -1.49, Percent Change: -5.34

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