Will oil go to $25

The big question in the oil market in recent times is whether prices will go from the bottom in 2016 or continue crashing down. Since the beginning of the year, raw material fell by nearly 18 percent and there is no reason to believe that the slump is over, said Jesse Cohen Investing.com.
According to him, there are five bearish factors that dominate the market, so that in 2016 oil may trade between 25 and 35 dollars per barrel.
Oil production outstrips demand after the boom in shale industry in the United States and after OPEC's decision not to restrict production in order to maintain its market share. According to the monthly report of the organization in October extraction within the cartel e about 31.64 million barrels per day, which is close to record highs.small business accounting software
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Offering of OPEC is expected to increase further when Iran return to the oil market, as international sanctions be lifted. The regime in Tehran wants to double its exports of oil to 2.3 million barrels per day by the middle of next year, thereby oversupply will grow even more.
Worries about high supply in the US, despite the decreasing number of oil rigs, would also provoke bearish sentiment. According to the company for services in the oil industry Baker Hughes number of platforms in the US in early November was 574, which is close to its lowest level since 2010. In the past 11 weeks oil companies have closed 101 platforms and this should be bullish factor because it implies reduced yields in the future. However, oil production in the US remains about 9 million barrels a day last year, which is close to the highest level since the early 70s.
Concerns about the state of the global economy led to allegations that the glut of oil market may last longer than initially expected. Slower economic growth in China has played a key role in the search for oil in the Celestial Empire in September was 226,500 barrels per day - the weakest growth of over 8 months. The Asian country is the second largest oil consumer after the US.
headwinds will come from a strong dollar as reserve Fed US decides to raise interest rates. So raw materials denominated in dollars will become more expensive for buyers using other currencies.
All these factors indicate that the return of balance between supply and demand is far, which is why oil prices will remain low, said Jesse Cohen.