Crude oil continues to go down in value and global oversupply, Market Leader reports. Yesterday, Brent went below the psychological level of $50 per barrel. At the same time, WTI is already trading below$47 per barrel Masterforex-V Academy reports.
The cost of WTI oil futures for February delivery is still going down. For now, many analytics are scared by the fact that the price is staying below $47. By the way, this is a new multi-year low. The last time we could witness such low oil prices was in in 2008, with the latest global financial and economic crisis was underway.
Despite all that, some analysts are convinced that the current bear market is the most natural outcome for now. The thing is that there are many factors pressing oil prices. At the same time, there is no news capable of supporting oil prices at least in the short run.
At the same time, while all those experts that the bear market as a natural outcome, they cannot predict the bottom for oil prices for now, Masterforex-V Academy experts report since the same bearish factors are still expecting downward pressure on the cost of crude oil worldwide. Obviously, the major reason for the current downtrend is the OPEC’s reluctancy to cut down on their oil production, which leas to wider global oversupply amid lower consumption. At the same time, the USA is reported to see its oil inventories expanding, mostly at the expense of producing shale oil.
After dropping below $47/b, the price found a temporary bottom at $46,83/b. The upper boundary of the current price range is $48,76/b. Still, the price tends to stay closer to the bottom of the range.
At the same time, Some Asian and European markets were disappointed by the report that Brent oil also got below the 50 level. Yesterday’s low was $49,68/b.
