Market Leader reports that global oil prices are going down once again. After spending some time above the psychological level of$50 per barrel, the prices dived below it again. The market plunge started yesterday, on the first trading day of the new trading week and the last day of October.
According to Masterforex-V Academy, the expert community believes that the recent unofficial OPEC summit that took place over the weekend, turned out to be the key market driver, dragging the prices down below the psychological level. As the result of the OPEC summit, the recent verbal agreement reached over the previous summit in late September now seems to be in jeopardy. The next time the issue is going to be discussed is the forthcoming official OPEC summit schedule for the end of this month.
After the news, Brent oil plunged down to $49,29 on Monday’s morning and then went further down to new local lows. WTI oil followed, thereby plunging all the way down to $48,37/b and then further down.
At the same time, Masterforex-V Academy reports that there is a secondary reason pushing oil prices down. To be more specific, the recent report on the amount of U.S. oil rigs released by Baker Hughes indicates that over the past week, the amount of oil rigs in the USA increased by 4 units or 0,72% up to 557 oil rigs.
No Oil Prices Above $60 Until 2012, IMF says
At the same time, the experts working for the International Monetary Fund are reported to have changed their oil forecast for the next few years. To be more specific, the recent report dedicated to the economies of the Middle East and Asia and released on October 19th says that the global market of crude oil is not going to see prices above another psychological level of $60/b at least until the year of 2021. For those of you who don’t remember, the IMF used to predict prices under $50/b over the same period. As you can see, the forecast is yet to be changed in any direction depending on multiple factors.
Another factor capable of influencing oil prices is the forthcoming U.S. presidential elections. If Hillary Clinton wins, oil prices are likely to go up since she is determined to resume the easy monetary policy, which may undermine a strong dollar and push oil prices higher. On the contrary, if Donald Trump wins, this is likely to result in lower oil prices. Some experts say that this event alone is capable of dropping them 5-7% down.
