Return to the price of oil after its fall

The year 2015 will probably end on a downward trend in oil prices. The price of black gold continues to fall, falling below $49 in mid-October 2015. What is behind this situation?

Chain reactions in the United States

Oil is one of the commodities to which investors who want to make a safe investment turn. Nevertheless, they may soon turn to other safe havens… Indeed, oil has recently been experiencing a series of declines.

In the United States, there are some chain reactions. In response to the fall in the price of oil per barrel, various measures have been taken, including the reduction of oil production. Despite everything, the stock is not decreasing, on the contrary.

For its part, oil prices are tending to decline. On 15 October 2015, the value of black gold fell below $49. And this decline follows the revelation of reports of oil inventories in the United States. According to statistics from the American Petroleum Institute, oil prices rose by more than 9 million barrels to just over 465 million barrels (for the week of October 9, 2015).

oil price

Taking action

This American situation only confirms the downward trend in oil prices. Faced with this, some countries decide to take various measures. Venezuela, for its part, put forward the idea of bringing OPEC closer to the oil-producing countries that are not members of this organization.

The idea would be to ensure that the oil price is consolidated (at $70 first and then rising over time to $100) knowing that the current strategy is to curb production volumes.

However, this suggestion seems to have been nipped in the bud. Saudi Arabia, for its part, has maintained its willingness to maintain its oil production. And this country, which can be considered unofficially as the head of OPEC, has not shown any interest in a possible price consolidation…

oil price in euros and dollars

A crisis in the raw materials market

It should be noted that it is the global commodity market that is experiencing a real crisis that has been going on for some years now. The decrease has been particularly noticeable since 2013. For its part, oil prices have a strong downward trend. Of course, we sometimes see days that end with an increase… But, overall, it is a downward trend that is emerging. Will the operators concerned find a solution to redress the situation? To be continued… In the meantime you can still use this information to trade oil on FXCM.