Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Sunday, 15 September 14:34 (GMT -05:00)



Stock and commodities markets

Why did crude oil crash by almost 11% last week?


The past trading week was a nightmare for the global market of crude oil, with a major price crash. In particular, Brent oil dropped in value all the way down to the lowest price since July 2017. This was a dive below 53 dollars per barrel. Since then, international experts have been trying to figure out the reason for that. 
 
All in all, the price dropped 11% down over the course of the past trading week. Experts say, this has been one of the biggest crashes seen over the last 3 years. On Friday alone, Brent oil lost more than 1% of its value, NordFX reports. At the same time, it's also interesting to note that Brent already lost some 12% of tis value 4 weeks before the latest price drop seen last week. The price traded below 53 dollars per barrel, but then managed to recover most of the lost ground. This time, as of Friday, it lost almost the same share of its value.
 
The OPEC+ agreement resulted in a temporary rally. 
 
For those of you who don't know, in early December, the participants of the so-called OPEc+ agreement signed an agreement to cap their oil production once again. Apparently, this agreement sent oil prices higher. However, as we can see now, this was a temporary rally. Back then, the prices managed to exceed 60 dollars per barrel, only to plunge again. It seems that this rally was a recovery inside a bigger-scale downtrend going on over the last few months. It's interesting to note that crude oil has been in the red zone for 9 out of 11 trading week. Since than, the energy carrier has already lost more than 30% of its value seen around the local highs.
 
It's also important to keep in mind that the bearish factors are getting stronger in the global market of crude oil. the list of the reasons triggering the downtrend includes the excessive supply in the global market initiated by more intensive oil exports coming from the United States coupled with a global economic slowdown, which is usually coupled with a decline in the global consumption of crude oil. By the way, American shale oil producers has taken the lead in global oil production this year.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

iOS13 Outshines iPhone

For Apple fans, September has been a special month from many years. This is the time when Apple introduces the biggest innovations and the latest products destined to be best sellers for the next 12 months. This time, everything is likely going to be the same. In just a couple of days, on September 10th, we are to witness another Apple event.
 
Publication date: 05 September 03:28 AM

US-China Trade War Makes Oil Prices Drop

The previous trading week wasn't an exiting one. The oil prices grew in the first part of the week while trying to make up for the losses of the previous week. Still, the second half of the week turned out to be a bearish one. WTI oil prices dropped below 55 dollars per barrel while brent oil dropped down to 61 dollars per barrel. Yet, the bearish momentum is still there.

Publication date: 04 August 08:33 AM

Gold Prices At Highest Levels Since 2013

The recent statements made by the governors and presidents of the world's leading central banks, including the Fed and the ECB, eventually resulted ingold prices making it over 1400 dollars per troy ounce. This means that the current price of gold is the highest one over the last 6 years. So, the bull market of gold is underway.
Publication date: 03 August 04:17 AM

Middle East Tensions Support Oil Prices

The currenty trading week has been controversial for the international market of crude oil. Chances are, the market is going to be relatively neutral throughout the rest of the week. Brent oil is trading around 63,50 dollars per barrel while WTI costs 56 dollars per barrel.
Publication date: 30 July 11:07 AM

Is Economic Decline In USA Inevitable?

The NY Fed model points out to the fact that the probability of another recession in the American economy has increased all the way up to 33%. Over the last 50 years, such signals have almost always bee followed by recessions.
 
Publication date: 13 July 08:39 AM

Will USA Manage To Prevent Stock Market Crash?

The U.S. Federal Reserve has eased their rhetorics in order to avoid another stock market crash. International experts are now trying to predict the possible consequences of the decision made by the American financial regulator, especially form the stand point of international investors. 

Publication date: 11 July 11:31 AM

Masterforex-V Names Biggest Stock Exchanges

Stock exchanges have been operating worldwide for many decades. They are specific financial institutions  or marketplaces that operate to let people and companies invet in various stocks and other securities. Those are the stocks issued by various companies representing various industries - from mining to services. These days, you can invest in stocks, indexes, bonds, options, and other securities.
 
Publication date: 17 May 11:57 AM

Masterforex-V Names SSE's 20 Biggest Companies

There are several cities in the world that can be called centers of business and financial activity. Shanghai, China, is definitely one of them. This is the home to China's biggest stick exchange. Shanghai Stock Exchange (or SSE for short) is the world's 4th biggest stock exchange in terms of market cap and number one in terms of the pace of growth.

Publication date: 17 May 11:23 AM

Masterforex-V Experts Call Hong Kong Exchange Financial World's Biggest Provoker

At the current stange of market relations, one can easily define the spots of the biggest economic and financial growth. Apparently, stock exchanges are on the list.On the one hand, the constant turnover of financial assets is a good thing, so is the opportunity to buy or salle a stock without major effort. On the other hand, internatinal experts have been signaling potential threats for quite a long time. At Masterforex-V Academy, they think that the major provoker in the financial world is Hong Kong Stock Exchange (SEHK). By the way, this is the world's 6th biggest stock exchange in terms of market capitalization. Apparently, this kind of significance in the financial world is the key reason for those potential threats.

Publication date: 01 May 01:08 AM

Will U.S. Stock Market Grow This Year?

The American stock market has reached another crucial strange. The forthcoming macroeconomic stats may trigger a major move in any of the 2 directions. International experts say that the future market reaction will depend on a number of macroeconomic stats as well as several events. However, the current bias seems to be bullish since at this point, there are no major reasons to expect another stock market crash within the next 12-18 months.
Publication date: 27 January 07:56 AM