As Saudi Arabia and other OPEC nations are reluctant to cut down on their oil production, oil prices keep on going down while being pressed by growing oversupply. In particular, WTI dropped down below $44/b yesterday, Masterforrex-V Academy reports.
According to Masterforex-V Academy, there is nothing surprising about this fact since the existing global demand is low (due to the Chinese and global economic slowdowns causing lower demand for crude oil) while the OPEC is still reluctant to stop the collapse of the global oil market by cutting down on the amount of crude oil their produce every day.
At the same time, the latest U.S. oil inventories report testifies to the highest level of inventories since 1982. At the same time, Saudi Arabia confirmed its intension to produce oil as usual. These 2 factors are definitely person the market. These are the factors that made WTI futures for March delivery decrease in value down to the lowest level over the last 6 years.
Yesterday, the price rebounded from the $45/b resistance to confirm the bearish sentiment. The price then successfully tested $44,08 and broke below it. According to the Commodities department of Masterforex-V Academy, oil futures have already lost over 605 of their value since mid 2014.
At this point, the price of WTI has set another low - $43,58/b. this is confirmed by the chat below, courtesy of Masterforex-V Academy.
As for Brent oil, there is no doubt that the market has resumed the bearish tendency. Still, the bulls are still trying to keep the price around $48-49/b.
