Thursday, June 22, 2017

Bull Looking For Anwers Why Crude Is Falling

News
Price, volume and leverage flagged crude oil as far back as early May 2017. Few listened, now the bulls are looking for answers. They won't find them in one chart.





Headline: Oil prices have been nose-diving, and one chart explains why

In recent weeks, amid relative calm in the stock market, oil prices have slid back to their lowest level in a year. On Wednesday, WTI crude oil, the U.S. benchmark price fell to $42.13 a barrel, hitting its lowest since August 2016.

And it’s all about the most basic principle in economics: supply and demand. In the global oil markets right now there is simply too much supply.

This week’s slide came, counterintuitively, after a report earlier in the day which crude inventories fell more than expected. A decline in inventories would be seen as a good sign for oil prices stabilizing — or even rising — as low prices have been blamed on a glut of supply.


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