It was no great surprise that OPEC left its output target unchanged today, so the fact that global oil prices still took another large tumble towards our long-held forecast of $70 per barrel underlines how negative the sentiment in the market has become. Indeed, Brent is now down at $73, while the traditional US benchmark, WTI, is already back below $70. Our view is that this immediate reaction is overdone, but there can be little remaining doubt that lower oil prices are here to stay.
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