Crude Oil Down 2%
Crude oil price fell over 2 percent
- OPEC lowered its forecast for world oil demand growth in 2020 due to the economic slowdown.
- President Donald Trump discussed relaxing the sanctions against Iran and raising the possibility of Iranian oil entering the market.
- 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
- 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.
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.
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.
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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.
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