Market Leader reports that oil prices started going down again backed by the fear that the global supply is going to get even higher amid decreased demand. In particular, earlier today, WTI oil dripped below $48/b on its way down to further local lows.
It should be noted that today’s start of the trading week didn’t coma as a surprise to most of international traders and investors out there. The sentient is clearly bearish, which is the key reason why the prices are going down.
At the end of the past trading week, WTI oil traded close to $48/b. However, a lot of geopolitical and market events triggered a further decline. Since the opening, the price has been going up and down within the scope of the 47,75 - 48,20 price range, Masterforex-V Academy reports.
Brent oil is going down in value as well. After breaking he psychological barrier of $55/b for the first time since January 2015, the price cannot recover. Monday’s trading session started at $54,45/b. Since the opening, the price has been going up and down within the scope of the 54,11 - 54,86 price range, Masterforex-V Academy reports.
At the same time, some experts predict that the next bearish target to be hit is $52.4/b. In the second half of the year, the price is expected to move within the scope of a pretty wide price range between $50 and $65 per barrel. The expert community is sure that this is the start of the new bearish trend in the global market of crude oil.
They say there are quite a lot of objective reasons to expect a further drop in oil prices. For instance, China, which is the world’s biggest consumer of crude oil, is currently seen an economic slowdown coupled with the recent stock market crash, which is the first wakeup call indicating decreased demand. Meanwhile, the global supply is growing and is expected to do so in the near future. The thing is that Iran is going to come back to the global market of crude oil as a major exporter only contributing to a wider imbalance in the market pressing oil prices even further. At the same time, OPEC members are not going to cut down on their oil production as well. That’s another big reason to expect a further price drop especially as there are no strong reasons backing a price recovery.
