Oil prices have been going down since the start of the trading week. The key drivers that triggered to bearish momentum in the market of crude oil are the fear for the Chinese stock market as well as the excessive supply of crude oil worldwide. At the same time, the agreement regarding the Iranian nuclear program and the situation around Greece are also pressing the prices, Market Leader reports.
As of yesterday, the price of Brent oil futures for August delivery dropped by 3,26% down to $58,35 per barrel. The price on WTI oil futures for August delivery dropped by 5,04% down to $54,05 per barrel, Masterforex-V Academy reports.
Over the last couple of weeks, the Chinese stock market (by the way, China is the world’s second-biggest consumer of crude oil) has ben showing poor performance. At the same time, the fact that Iran is planning to export more oil than expected while Greece is probably going to quit the Eurozone after the referendum said NO to the conditions put forward by the troika of lenders. These factors are also pressing the global market of crude oil.
At the same time, the list of factors pressing the oil pries expanded last week when Baker Hughes, a U.S. oil and gas company, announced an expansion of drilling rigs up to 862 units. Altogether, all of these factors triggered a downswing to the 2-month low, Masterforex-V Academy reports.
