22.08.2014 - Decline in oil prices slows down
Oil price fall has slowed, but continues to decline gradually. We predict that in the near future quotations of Light Sweet crude oil will reach the strong support near 92.00 dollars per barrel. Oil prices are under the pressure of the weak demand in Europe and a slowdown in China's economy, the growth of production in OPEC countries and America. In addition, natural gas is gradually becoming more and more popular and in some industries is an alternative to petroleum products. Among the factors that can positively affect the price of oil can be a worsening of the situation and Iraq, and in the east of Ukraine, but at the moment traders have positive expectations with respect to these two conflicts. It should be noted that the strengthening dollar also contributes to the fall in oil prices.
We maintain our negative outlook on oil, but soon began to admit the possibility of upward correction.