11.07.2014 - Oil continues to become cheaper
The situation on the oil market over the past few months has changed dramatically, and currently quotations of the American benchmark Light Sweet crude oil continues to move within the local downtrend. On the one hand the tension in Iraq, Libya and Ukraine are already included in the prices and continues to stabilize gradually, but remains tense, on the other hand Israel has mobilized 20 thousand people and can start a ground operation in Palestine, which maintains a high level of prices.
It is noteworthy that recently was supplied the first batch of oil export from the United States, which is a signal of a further increase in the volume of U.S. exports of oil. Slowdown in the Eurozone’s industry is another factor that contributes to the fall of oil prices. In this regard, we expect a decline of oil in the long term, but our forecast can change in case of growth of geopolitical tensions.
Wish you the profits!
FXFINPRO Capital Analytical department.