Oil prices have fallen sharply

Oil prices goes into a dive

In brief: Oil losing value, the cause of the new trend was the loss of hope of investors for the growth of black gold.

Oil is under pressure. The reason – the refusal of investors to buy long-term futures. Oil futures Brent and Light Sweet today traded in negative zone after the oil markets on the eve of the first time in five trading sessions has risen. Since the beginning of the day oil fell more than $ 1 per barrel.

Negative dynamics in the prices of the deals today due to some consolidation of the positions of the U.S. dollar on world currency markets. Dollar FOREX is growing against the euro and other currencies, except the Japanese yen, which caused some investors to doubt that the leadership of the EU will be able to stabilize the euro. Decline in oil prices today also contributes to the situation in the market shares of Pacific Rim countries. Thus, the main stock index, China Shanghai Composite fell today, by 1,9%, while the main stock index, Japan’s Nikkei – on 1,14%. Meanwhile, in Europe today, the main stock indexes also largely reduced.

The price of oil futures transactions were ($ / bbl.): – Light, Sweet Crude Oil (June) – 75.62 (-1.18) in the range of quotations 75,51-77,39; – IPE Brent Crude (June) – 79.02 (-1.10) in the range of quotations 78,91-80,59. Liquidation of long positions on oil futures today also contribute to expectations of further increases in U.S. stockpiles of crude oil and petroleum products, including the oil terminal at Cushing in Oklahoma. Recall oil exchanges in New York and London on the basis of trading on May 10 the first time in five trading sessions has risen. Prices of oil futures with the start of this week have risen on average by 2,3% after the previous four sessions, they have fallen by about 13%.

Ukrainian Globalist
2010-05-11 11:03, Economics.

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One comment к “Oil prices have fallen sharply”

  1. Guava Says:

    Oil dropped below $76 a barrel as the euro weakened against the dollar on speculation Greece, Spain and Portugal will struggle to contain their deficits.

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