Reasons for the Rise in Crude Oil Price
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Author:pmo55f6d8
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Published time: 2019-08-09
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As a result of the rising trade war between China and the United States, tit-for-tat tariffs have plunged the price of crude oil. Because of the serious slowdown of the United States and even the fears of global economic recession, the United States has once again announced the extension of the exemption from sanctions against Iran, which will lead to a sharp drop in oil prices.
As a result of the rising trade war between China and the United States, tit-for-tat tariffs have plunged the price of crude oil. Because of the serious slowdown of the United States and even the fears of global economic recession, the United States has once again announced the extension of the exemption from sanctions against Iran, which will lead to a sharp drop in oil prices.
Last week, the Federal Reserve announced a cut in the federal funds rate, causing a global sensation. For the first time since the 2008 financial crisis, the Federal Reserve announced interest rate cuts. The Fed's interest rate cuts and the extension of Iran's sanctions exemption have depressed market sentiment both macroscopically and geopolitically, while the weakening economy has long restrained the growth of crude oil demand.
At the beginning of the week, the white market of crude oil continued to decline, and now it has recovered to 55 crosses, and the short-term forecast is to maintain a bottoming shock upward; crude oil has maintained a downward trend in the near future as a whole, and last week's decline touched the downward track of the downward channel and temporarily stopped the decline and rebounded, but crude oil as a whole is still in the downward trend, plus the middle of last week. Oil prices continue to break low, the overall trend of future crude oil continues to see the downward turbulence. Short-term oil prices remain low shock adjustment, the overall trend is biased to adjust; the future trend of crude oil continues to see the downward trend of shock.
Generally speaking, there are two reasons for the sustained decline in crude oil prices. One is the loosening of OPEC's output reduction. The other is the escalating trade war between China and the United States, which has affected the global economy. Therefore, the follow-up of crude oil prices should be a sustained and slow decline.
