Recent reports reveal that the global oil markets have been slumping for four consecutive days and the oil price has reached its lowest point since 2009. Analysts worry about the crude prices of oil and the global supply glut.
The refined oil products like heating oil rose and gasoline have reached its lowest crude prices and investors are taking advantage of this recent fact.
Some traders stated that the trend for crude oil seemed lower but the prices could rise back up should there be any break in the market sentiment. The moment they were talking about happened today, when the dollar was suppressed by an unexpected weak US economic data. This event brought the oil price even lower than it already was, but it stopped going downward at one point.
The Benchmark Brent crude oil price went down to $2 and $51.11 per barrel by 12:05 p.m. EST, days after the oil price has reached its lowest point since 2009.
The US crude oil price went down to $2.20 and $47.84 per barrel, following its lowest point that took place in April 2009 when the oil barrel was $47.74.
Phillip Streible, who works as a senior market strategist at RJO Futures in Chicago said that the oil price can go down from $46 to $45. He added that the United States can become a very important crude oil provider and it could stay this way for some time.
Recent reports show that oil prices have gone down more than 55% since June 2014, when Benchmark Brent sold its oil for $117 per barrel and US crude sold theirs for $107.
This selloff started following concerns over the oversupply of high quality US crude oil. This actually started to accelerate following the OPEC meeting which took place in November 2014. This is when Saudi Arabia dismissed production cuts in order to boost the oil prices.
King Abdullah of Saudi Arabia said on Tuesday that his country will deal with the challenges posed by the lower oil prices by using a strong and firm will. The most important provider of crude oil in the world did not say anything about cutting the oil supplies.
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