Crude oil prices plunged from a recent two day high in New York, apprehending a drop in oil demands due to the weakening of the US economy. The US presently is the highest consumer of oil. Falling crude oil also took along with it the future markets by about .6%.
This has furthered the growing concerns about the improper health of the economies of the US and the European countries. There are modest developments expected in the same until the end of this year. Moreover Crude oil is being apprehended to fluctuate within a range of $80 to $100 in this span of time.
This faltering in the crude oil trade and the subsequent fall in the equities markets, particularly of Asian markets, is a sign of a momentary turbulence though. The economies of US as well as of European countries have been striving hard to control such fluctuations and the speculations associated with it. The market seemingly however has two choices to fall or to rise, and a few days fall will definitely better the situation on the third day.
Crude oil’s delivery for this September has dropped by 56 cents to $87.02 per barrel in the New York’s Mercantile Exchange’s electronic trading.
Further US crude oil inventories have witnessed a rise to 354 million in the week that ended on August 12th as per the reports prepared by the Energy Department. The nation’s Strategic Petroleum Reserve is letting out huge stocks in close coordination with the Paris based International Energy Agency.
An overall failure of crude oil to breach chart resistance is a clear implication of prices to decline further.
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