Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Sunday, 31 May 20:33 (GMT -05:00)



Stock and commodities markets

Why did crude oil crash by almost 11% last week?


The past trading week was a nightmare for the global market of crude oil, with a major price crash. In particular, Brent oil dropped in value all the way down to the lowest price since July 2017. This was a dive below 53 dollars per barrel. Since then, international experts have been trying to figure out the reason for that. 
 
All in all, the price dropped 11% down over the course of the past trading week. Experts say, this has been one of the biggest crashes seen over the last 3 years. On Friday alone, Brent oil lost more than 1% of its value, NordFX reports. At the same time, it's also interesting to note that Brent already lost some 12% of tis value 4 weeks before the latest price drop seen last week. The price traded below 53 dollars per barrel, but then managed to recover most of the lost ground. This time, as of Friday, it lost almost the same share of its value.
 
The OPEC+ agreement resulted in a temporary rally. 
 
For those of you who don't know, in early December, the participants of the so-called OPEc+ agreement signed an agreement to cap their oil production once again. Apparently, this agreement sent oil prices higher. However, as we can see now, this was a temporary rally. Back then, the prices managed to exceed 60 dollars per barrel, only to plunge again. It seems that this rally was a recovery inside a bigger-scale downtrend going on over the last few months. It's interesting to note that crude oil has been in the red zone for 9 out of 11 trading week. Since than, the energy carrier has already lost more than 30% of its value seen around the local highs.
 
It's also important to keep in mind that the bearish factors are getting stronger in the global market of crude oil. the list of the reasons triggering the downtrend includes the excessive supply in the global market initiated by more intensive oil exports coming from the United States coupled with a global economic slowdown, which is usually coupled with a decline in the global consumption of crude oil. By the way, American shale oil producers has taken the lead in global oil production this year.

 

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

 

Add to blog
Got a question? – Ask it here »
 

Is Gold Worth Investing Amid Crisis?

Securing assets has always been number-one goal during crises. This is something that worries borth financial experts and plain folks who are far from the  peculiarities of the financial world but who are still witnessing their savings vanish amid inflation and devaluation.

Publication date: 14 April 02:09 AM

Remember the Key Rules of Investing in Stocks

Without further ado, let's consider a bunch of principles of investing in stock, which will put the odds of succeeding in this business in your favor:

Publication date: 11 March 01:14 AM

Apple Patents iPhone Without Ports And Holes, Device Expected In 2021

It seems that the release of the long-awaited iPhone without any ports or holes is getting more and more portable. Apple has always favored minimalistic designs, especially over the last 5 years. In 2015, almost all of the classic ports were deprecated in MacBooks in favor of a single one - USB-C Thunderbolt 3. In 2017, iPhone 7 got rid of the 3.5mm audio jack.

Publication date: 05 March 08:20 AM

Gold Sets New Records

The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.

Publication date: 14 January 01:23 AM

Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM

Oil Prices Have Made The Biggest Rally In History

Gold, yen, and oil currencies are getting more expensive. The strike came for an unexpected direction. Saudi Arabia's oil facilities were attacked, which increased geopolitical risks in the region and simultaneously undermined the global oil supplies. That was basically the reason why crude oil prices made the biggest rally in history but then moved back a bit and are still trading over 10% higher relative to the start of the trading session. 
 
Publication date: 16 September 03:26 AM

iOS13 Outshines iPhone

For Apple fans, September has been a special month from many years. This is the time when Apple introduces the biggest innovations and the latest products destined to be best sellers for the next 12 months. This time, everything is likely going to be the same. In just a couple of days, on September 10th, we are to witness another Apple event.
 
Publication date: 05 September 03:28 AM

US-China Trade War Makes Oil Prices Drop

The previous trading week wasn't an exiting one. The oil prices grew in the first part of the week while trying to make up for the losses of the previous week. Still, the second half of the week turned out to be a bearish one. WTI oil prices dropped below 55 dollars per barrel while brent oil dropped down to 61 dollars per barrel. Yet, the bearish momentum is still there.

Publication date: 04 August 08:33 AM

Gold Prices At Highest Levels Since 2013

The recent statements made by the governors and presidents of the world's leading central banks, including the Fed and the ECB, eventually resulted ingold prices making it over 1400 dollars per troy ounce. This means that the current price of gold is the highest one over the last 6 years. So, the bull market of gold is underway.
Publication date: 03 August 04:17 AM