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Thursday, 23 May 08:09 (GMT -05:00)


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Stock and commodities markets

Crude Oil: Can “Green” Technologies Drop Oil Prices?


 

Not so long ago the G20 gathered to hold another summit. One of the key issues on the agenda was the international support of the so-called “green” technologies.
 
 
During the summit, Barack Obama said that any country should give priority to the green sector when implementing the strategy of energy security. 
 
In order to find out the current state of affairs in the global market of crude oil Masterforex-V Academy experts conducted a comprehensive analysis of the market.

 

 

 

 
 
Tips for Investors: Oil Market Sees Downtrend. Ecologists Show Concerns.
 
Early May brought an unpleasant surprise to oil investors, thus initiating a downtrend in the market of oil futures. In 3 trading days, crude oil lost 8.5% of its value – the price dropped from $104,91-106,24/b down to $97,31-98,06/b. Since then the bears have been dominating the market.
 
Cheaper US Dollar. Over the first two weeks of May, the US dollar depreciated by 0.2%. As a result, investors started reorienting towards commodity markets. The US Dollar has recovered. But it is too late.
Higher crude oil reserves. As of today, the US crude oil reserves are estimated at 1.5 billion barrels.
 
Eurozone problems. The manufacturing production is declining while the debt crisis keeps escalating. Now it is Spain ’s turn to ask for external financial support.
 
President Obama promised to support the “green” energy. However, according to Obama’s administration, a gallon of crude oil should cost at least $75 for the alternative energy to be economically rational. Therefore, today’s weakness of the crude oil market is a major concern in this aspect.
 
As of June 9th, crude oil prices were rallying for 3 days in a row on speculations connected with QE3. However, the rally was temporary (The bears are still dominating the market).
 
According to Masterforex-V Academy, at the end of the US trading session (June 9th), July’s WTI futures appreciated by $0.73 or 0.9% up to $85.02/b.

 

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In London, July’s Brent futures appreciated by $1.89 or 1.9% up to $100.73/b.

 

 

 

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If to consider Obama’s promises, the US government is going to invest $500 billion in the creation of the “green energy” industry. Some real steps have already been taken:
 
·         The agreements with Solarworld on the solar energy development.
·         The statements made during the G8 summit.
·         The local support for the introduction of green technologies.
 
However, there is a major problem: the cost of the “green” energy: $75 a gallon is hardly probable in the current conditions. The global market of crude oil is showing weakness. However, after the period of destabilization is over, oil prices may well hit $80-90 per gallon.
 
As for the pricing, this aspect is unreachable for such innovations. Firstly, at this point, no “green” energy source can provide enough energy to supply all the energy needs.
 
Therefore, the “green” energy cannot become the basis of economic prosperity.
 
According to the Commodity Trading Department of Masterforex-V Academy, there are 2 factors preventing oil prices from collapsing:
 
1.       Higher consumption of energy around the globe (mainly at the expense of China and India).
2.       Speculation (from individual traders to oil giants such as Exxon Mobile etc.)
This means the oil giants just won’t let oil prices decline below a certain level.
 
Crude oil and stocks show positive correlation most of the time. The intraday trading volume in the market of crude oil has increased considerably:
 

 

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Market Leader and Masterforex-V Academy would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:
 
In your opinion, what are the reasons for the recent oil price decline?
 

 

 

You are free to discuss this article here:   forum for traders and investors

 

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Gazprom Sees Income Decline. Possible Threats For Russia?

 

Negative forecasts for Gazprom’s future have become a routine for analysts and strategists from around the world, including Russia, China, Great Britain and the USA. While some of them can be treated as a means of info wars, most doomsday predictions are so old that they shouldn’t be considered seriously by market participants.
 
Still, there are some objective negative tendencies and factors. In particular, Gazprom has recently seen an income decline. What are the reasons behind it and what are the threats to the Russian energy-dependent economy?
 
Publication date: 22 May 08:06 AM

European Stock Indices Go Red

 

 

European stock indices are trading in the red zone in advance of the forthcoming EU summit and US economic reports. European leaders are planning to discuss the ways and means to fight tax laundering.
 
Publication date: 22 May 07:24 AM

Apple Is Planning To Patent Social Camera Flash

 

 

A couple of days ago Apple, the famous tech giant, applied for another patient. This time the tech corporation is planning to patient the so-called “social camera flash”.
 
Publication date: 21 May 03:19 PM

US Stock Indices Show Weak and Multidirectional Dynamics

US stock indices are trading without any major moves as they cannot find common dynamics. Yesterday, Standard & Poor's 500 dropped down to the local low, which can affect other stock indices. However, most indices are currently trading in the green zone.

 

 
Publication date: 21 May 03:04 PM

Asian-Pacific Indices Go Red

 

 

Asian-Pacific stock indices closed today’s Asian trading session in the red zone. Yesterday, indices reached their 5-year highs. Therefore, today’s retracement looks neutral.
 
Publication date: 21 May 09:01 AM

European Stock Indices Go Red On Poor Reports

European stock indices are trading in the red zone today amid weak quarterly reports published by several European companies.
 
Publication date: 21 May 07:57 AM

Brent Comes Close To $105/b.

 

On Monday, Brent oil was trading around $105/b, taking into account positive economic stats and stock market growth along with moderate forecasts for oil demand and stocks.
 
Publication date: 20 May 05:54 PM

Investors Should Get Ready For Further Monetary Stimuli

 

 

Lower inflation in the UK amid brighter prospects of the British economy may well give the Bank of England a few extra weapons in its arsenal of economic stimuli. This is what Martin Weale, an MPC member, thinks on the issue.
 
Publication date: 20 May 05:22 PM

European Stock Indices Break Records

European stock indices have started this trading week positively and are currently trading in the green zone. Some indices keep making new 5-year highs.

 

 
Publication date: 20 May 08:55 AM

Asian-Pacific Stock Indices Close Bullish

 

 

Asian-Pacific stock indices closed today’s trading session in the green zone.
 
Publication date: 20 May 08:44 AM