The price of Brent's crude oil fell below the $ 70-y-bargain on Friday for the first time in seven months, moving to the borders of the market territory.
Brent's raw, the global benchmark, down 1.6% at $ 69.55 was a bargain on ICE Futures Exchange London. On the New York Commercial Exchange, the future of the Mid Texas Futures dropped by 1.7% at $ 59.67 in barrel.
The global benchmark was committed to joining a WTI in a territory on the market, after the U.S. On Thursday, he added his four-year-loss losses in early October after 20%.
In general, Bear markets are defined as a 20% decline in the market peak and Brent recently down 19.2% of its reach to its four years in October.
Ozone-specific factors such as increasing production and softening in US oil penalties on Iran have combined the wider market concerns about global economic growth and the growth of earnings – which stimulated the sale of an equity market during October to heavyweight oil prices in recently
heisenfelt / European PressPoto Agency
"We have seen a high production of OPEC in recent months – those concerns have passed – and a focus has turned to the fact that the global economy slows down, especially in China," says Caroline Bain, chief economist goods in Capital Economics.
Selling has accelerated in recent days when announcing Energy Information Administration numbers showing US oil lists in five high months. Representatives from the Institute of Petroleum Exporting Countries will have those figures in mind when they meet non-OPEC members this weekend in Abu Dhabi.
Investors will keep a close look at headlines of the OPEC + conference, as failure to show reversal in recent output fluids is likely to further press prices, Commerzbank analysts said in a note.
Although there have been a number of factors combined to encourage oil sales, investors who look beyond short-term factors have a good reason to be optimistic about repaying prices, analysts said.
Trump administration exceptions on Iran's oil sanctions will be temporarily and equity markets have stabilized. In addition, communications from Saudi Arabia may be able to take advantage of the production of spare spare parts and abandoned by Iranian, Venezuelan and Libyan minor productions according to the Harry Tchilinguirian global merchandise market strategy, in BNP Paribas.
"Although short-term factors have pushed the feeling, we do not believe that Saudi can offset those countries and oil demand is rising seasonally, so this can be a good time to get in. oil, "said Mr. Tchilinguirian.
He added to the pressure on the general goods on Friday was the revival in the US dollar. The WSJ Dollar Index – which measures US money against a basket of another 16 – is higher by 0.2%, has reversed its losses in recent weeks and extended its climb of up to 5.3%.
Dollars named as oil tend to be more expensive for other currency holders when the green rises.
Attention also focused on the production of North America, after Montana's judge ordered to stop building on the Keystone XL pipeline.
Nymex refresulated gasoline blendstock-the benchmark gasoline contract-fell 0.19% to $ 1.64 gallons. The ICE collection changed hands at $ 650.75 tonnes, down 2.8%.
Write to David Hodari at [email protected]
Corrections and Improvements
WTI has a 20% high in the market in October. Previous version of this article said that WTI had fallen by 20% this week.