Articles
-
4 reasons crude-oil prices are in a nasty death spiral—again
Crude-oil futures have been facing severe headwinds since last year, when prices for the U.S. and global benchmarks shed more than half their value from the highs seen in June 2014. Now, crude oil faces another stunning unraveling.
The commodity has already lost a third of its value in 2015, staging what seems like a relentless drop toward multiyear lows.
On Thursday, West Texas Intermediate crude CLF6, -0.68% settled at $36.76 a barrel and Brent crude LCOF6, -0.73% finished at $39.73 a barrel, with both marking their fifth day of losses in a row. Prices for both grades settled at their lowest levels since February 2009.
But contrary to popular belief, the Organization of the Petroleum Exporting Countries isn’t the only reason for oil’s most recent downturn.
“The likelihood of rising OPEC production going forward” is certainly a concern, said Matthew Smith, a commodity analyst at ClipperData.
But strength in the U.S. dollar, resilient U.S. production and a continuing global supply glut are also among the key reasons why oil prices continue to fall, he said.
Here’s a detailed look at the key reasons behind crude-oil prices’ recent descent:
Read full article
-
Authorized Person for MEX NEPAL
Mob: +977 9856030634 -
Biratnagar Branch Manager
Mob: +977 9852033934 -
Our Clearing Member
-
Our Banking Partners
-
-
-
