As reported on Friday, the prices of crude oil are getting lower and lower in a very fast rhythm. Of course, everybody was waiting for this after the state in April, but this situation now has several other, unexpected, reasons too. Brent is dropping about 1.06%, WTI 1.04%.
First of all, we should see this as a positive improvement. Some months ago, the high prices were a real problem for the consumers, because everybody knew, that summer will bring a big demand of oil. The driving season had to begun, and if the oil will still show high prices, the gasoline prices should bee raised too.
Indeed, thanks to OPEC, the barrels became a bit expensive for some days, but this was not for long. The IEA saw, no one bought crude anymore, so they came with a nice little plan. The IEA members decided to release about 60 million barrels oil from their emergency stock, to recover the prices and the balance between the offer and demand. Thereto is also important to mention, that the US dollar is getting stronger. It raised almost 3.3%.
And all this factors did it! Brent and Crude show now values, like the didn't for a long time! While a barrel Brent costs in April $126, its actual value is $103.65. WTI has reached in Spring almost $113 per barrel, but now it dropped to $90.19! Almost $20!
Sure, this improvement is a really good sign for the purchaser, but it has other effects too. The raise of the Dollar influences the crisis in Europe, and also the rates of Silver, Gold, and Copper.
However, it would be interesting to see, what the future will bring. The last time a barrel of WTI was under $ 50 was 2 years ago, in 2009. If we can get back to that state?
|< Prev||Next >|