As we have seen recently, there is a general trend that presents a constant fall in oil prices. The reasons for that are twofold:
- A genuine decrease in world demand for crude oil which might indicate the possibility of a recession.
- An American pressure on OPEC countries not to cut supplies to keep prices low in order to exert economic pressure on Russia as a result of its aggressive policy in the Ukraine crisis.
Nevertheless, the trend is not definite. There are some fluctuations in oil prices as the commodity is going up and down. Last week (March 22-27, 2015), there was a rise in prices until Friday on which the commodity’s bullishness reached an abrupt end with significant loses. What happened last week was a direct result of the market’s balancing mechanism. On Friday, investors felt that crude oil was overvalued and so it was time to ditch it.
It will be interesting to keep record of the commodity’s performances in the coming week.
Source: FMTrader’s financial reviews
Sounds like a lot of tosh imho.
Main reason I have seen cited for the general fall in prices is the Saudis forcing prices down to make shale oil financially unviable.
Last weeks spike was in part due to the tensions in the Middle East , Iran/Iraq/Saudis/Yemen
Source: Nasdaq - End of day Commodity Futures Price Quotes for Crude Oil WTI (NYMEX)
The stronger dollar and oversupply have led to a drop in oil prices again.
Job gains were better than expected and so this strengthened the dollar.
Oil prices are at a record low. These levels have not been seen in a decade and with the last lowest settlement on February 9, 2004.
Oil should continue to decline as there are considerable stockpiles available.
Emerging markets have notably struggled to grow and this has reduced demand for oil.
[B]Falling costs and better productivity means that outlook for oil is pretty bearish. [/B]
CCOO de Catalunya has requested an urgent meeting of the inter-contract health and safety committee of Repsol Petroleum following the emission of hydrogen gas