Mohr said the grade of crude oil used as a benchmark in oil pricing is oversold at US$56 a barrel and a correction is coming that will boost its value as high as 25%. “The decision by Saudi Arabia not to reduce output to shore up international oil prices, but instead to allow prices to drop to levels curbing U.S. shale development appears to be having a negative impact on confidence in a wide variety of other commodity as well as equity markets,” she pointed out.
