The oil price fell by 4%, the market panic
On Wednesday, oil prices plunged more than 4%, hitting a new 7-month lows under a mark of 56 dollars for barrel. At the end of the day the price has reduced losses, finishing in the center, representing 57.30 USD. In the morning trade of Thursday, the futures are trying to recover, aiming to level 58.
The market of black gold remains sensitive to any manifestation of negativity, and the focus of players remains the us-Chinese trade war, which in light of recent events, few people looks forward to progress in negotiations at this stage, while further exchange rates Brent able to push much lower from current levels.
Locally pressure on prices strengthened unexpectedly bearish report of US Department of energy, reflecting the increase in crude oil inventories of 2.4 million barrels against the forecast decline by almost 3 million after seven weeks of decline in stocks, and a large scale. While gasoline inventories increased by 4.4 million barrels, while stocks on the Gulf coast was fixed at a record for this time of year meaning. Increased production, again approaching historical highs.
Given the market’s vulnerability, the report was enough to trigger a wave of aggressive sales in the raw materials segment. Today, Brent supported by good data from China, where despite trade friction with China, in July exports unexpectedly returned to growth. Despite the current attempts to rise, oil is still subject to downside risks amid trade conflict.
Academy of management Finance and investment