Cornerstone Worldwide apparently believe that the recent bounce in oil prices may be the first of many as the US dollar rally ran out of steam and the members of OPEC prepared for their meeting to discuss further cuts in production.
A source familiar with Cornerstone Worldwide suggested that the market could experience a “double whammy” as the US dollar weakened further on the slowing deleveraging of assets by investors and on OPEC’s actions at the meeting at which it is widely expected production will be cut significantly.
The price of oil has plunged from its record of $147.27 to its recent lows below $50 a barrel. This fall has seen a number of OPEC member states call for larger cuts in order to bring prices closer to $80 a barrel.
Cornerstone Worldwide apparently maintain that although world demand for oil is falling, it remains bullish on crude’s medium-term outlook citing evidence that it is becoming increasingly difficult and expensive to source new supply.
Cornerstone Worldwide have issued a number of buy recommendations on several oil services and exploration stocks to its clients citing the resumption of the long-term bull market in oil.
