This week, commodities have been giving us signs indicting that the markets must have reached the bottom and are now trying to recover. At least, there are several financial experts that think so. On March 2nd, when the EIA reported the biggest crude oil inventories growth in the USA seen since the Great Depression, one might expect on oil prices crash within days if not hours.
Still, there has been no such crash since then. After hesitating a bit, oil prices resumed their recovery. The thing is, more and more of those oil traders out there are ready to bet big on the end of the major bear cycle in the global market of crude oil, which has been there for like 20 months in a row.
On top of that, the global oil market has been suffering from the never-ending overproduction of crude oil amid the fact that the world’s biggest oil exporters are still fighting for their market share. However, traders have learned to take into account other factors driving the oil market.
For example, the oil trade experts for London’s office of Societe Generale assume that given the fact that the world has plenty of storage capacities to store all the excessive supplies of crude oil, chances are the market has already reach the bottom and we are not going to see any major lows in the near future. At the same time, they say that when the market crashed below $30 per barrel, it became obvious that the bears had gone too far and this wouldn’t last forever. For those of you who don’t know, in January 2016, Brent oil crashed down to $27 per barrel. Since then, the price has already recovered a bit of the lost ground. These days, the price is somewhere between $35 and $40 per barrel. Still, it is way too premature to expect any major recovery up to $100 or so. There are no fundamentals or pretty much any other factors to back such a recovery, Masterforex-V Academy experts say.
