Brent Expected Below $60 In Early 2015

Brent crude oil was steady above $62 on Tuesday morning as investors anticipated a round of encouraging US data later in the day. The commodity traded at $62.10 at 8:00 GMT, despite forecasts of a fall below $60.

US housing data out on Monday came in below expectations, causing many to worry about the state of the US housing market. Existing home sales fell 6.1 percent in November, a six month low. The figure surprised, but analysts said it wasn’t a good representation of the overall trend within the housing market.

On Tuesday, the nation is set to release a host of data, which investors will scour for a better picture of the nation’s economic health. Most of the reports due out are expected to show positive figures, which would be beneficial for crude prices. Durable goods orders and GDP will be among the most closely watched reports as they will provide some insight into the nation’s crude appetite.

However, US data is unlikely to move prices much higher even if the reports are extremely encouraging. CNBC reported that some analysts see Brent prices falling below $60 again over the next six months as the global supply glut grows.

Gulf producers have stuck by their decision not to cut production in November, with Saudi Arabia leading the charge. The kingdom has said it will not agree to a cut unless producers outside OPEC do the same.

However, US producers have already begun to start loosing money as drilling is too expensive at the current price level. Drilling has declined over the past weeks, something that will likely continue through the beginning of 2015, which would be supportive for crude.