Crude Oil Price Slumps into Bear Market Territory
Crude Oil Price, Analysis and Chart:
- Brent crude has fallen over 20% since the late-April peak.
- Global growth fears continue to roil the oil complex.
Q3 2019 Goldand Oil Forecasts and Top Trading Opportunities
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Brent Crude Oil Falls into Bear Market Territory
Brent crude is now in a bear market and continues to break multi-month lows as sellers dominate the market. The price of oil has fallen by around 21% from its April 26 high of $74.97/bbl. to its current level of $58.68/bbl. and has taken out support around $59.00/bbl. leaving the market vulnerable to further falls with old swing-lows at $57.78/bbl. ahead of a complete re-trace back to $50.27/bbl. made back in December 2018. The market looks oversold according to the CCI indicator but the overall picture remains negative.
The latest sell-off was not triggered by one specific action but by a growing acceptance that global growth remains anemic and that central banks may need to get ahead of the curve to boost productivity and fuel inflation. The central bank of New Zealand (RBNZ) today slashed interest rates by an unexpected 50 basis points – 25 bps was expected – and said that interest rates may move even lower from their new level of 1%. In addition to the global currency ‘race to the bottom’, the US-China trade spat, and the EU-UK Brexit stalemate continue to fuel a bearish backdrop, while heightened political tensions between nuclear powers India and Pakistan over the Kashmir region will also add to global fears.
Crude Oil Daily Price Chart (September 2018 – August 7, 2019)
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