Crude Oil Down 2%

by Sep 12, 2019Market Reviews

Crude oil price fell over 2 percent

 

Market news:

  1. OPEC lowered its forecast for world oil demand growth in 2020 due to the economic slowdown.
  2. President Donald Trump discussed relaxing the sanctions against Iran and raising the possibility of Iranian oil entering the market.

News details:

  1. The EIA short-term energy outlook report released on Tuesday (September 10) lowered the demand and price expectations for crude oil in the next two years. The report lowered the forecast of global crude oil demand growth by 110,000 barrels per day to 890,000 barrels per day. The price of WTI crude oil is expected to be US$56.31 per barrel in 2019, which was previously expected to be US$57.87 per barrel. Goldman Sachs also lowered its forecast for crude oil growth in 2019 from 1.1 million barrels per day to 1 million barrels per day. In the early morning of Wednesday (September 11), the US crude oil inventories unexpectedly fell by 7.23 million barrels to 421.9 million barrels in the week ended September 6, far exceeding the expected decrease of 2.6 million barrels; gasoline inventories decreased by 4.46 million barrels. The stocks of both crude oil and gasoline drops stimulated oil prices to rebound from the low level in the day

 

  1. On Tuesday (September 10), US President Donald Trump unexpectedly announced the dismissal of US National Security Adviser Bolton and said he strongly disagreed with many of his recommendations. As everyone knows, Bolton has always been in the “hawkish” aspect of foreign policy, and he has maintained a tough stance in relations with the United States and Iran. This shows that US President Trump is considering relaxing the sanctions against Iran.

Market trend:

All kinds of news led to the expansion of the WTI and the Brent Crude Oilsfell more than 2% during the day. WTI crude oil fell below $56/barrel, refreshing to a low of $55.79 per barrel. Brent crude oil also fell sharply, refreshing to a low of $60.64 per barrel.

 

Related Posts

Euro Still Dropping, Gold Still Rising

Euro Still Dropping, Gold Still Rising

The Euro only continues to drop lower and lower. When we looked at the EUR/USD pair on the 7th, it was at a 4-month low. When we revisited it just under a week ago, it had managed to hit a low not reached since April 2017. And now the Euro has dropped further still, sinking below the 1.0800 mark. It seemed to recover slightly, but has now dropped back down, leading to a 34-month low.

read more
Nikkei 225 Drops Amidst Fears of Japan Recession

Nikkei 225 Drops Amidst Fears of Japan Recession

The Nikkei, or Japanese Stock Market Index, is down 1.6% after a fall of 330 points, marking a fourth straight day of losses.
The most obvious factor affecting this is the continuing fears of the coronavirus, which is affected all Asian markets as the severity of the virus only worsens.

read more

Black Bull Group Limited (trading name: BlackBull Markets) is a New Zealand registered and incorporated company (company number: 5463921). We are also registered with the Financial Services Provider Register (number: FSP403326).

Black Bull Group UK Limited is registered in United Kingdom, Company Number - 9556804. Payment clearing services provided by: BlackBull Group UK Limited (Company Number - 9556804) Address - 483 Green Lanes, London, Greater London, United Kingdom, N13 48S

Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.

Copyright © 2020 Black Bull Group Limited. All Rights Reserved.

Share This