Crude Oil was weak most of the month on lower demand and high production with a global glut. The commodity closed at 91.16 after climbing back above the $94 level and then crashing as the markets closed for the month.
Brent Oil
dipped from over $100 to close at 94.98 near its weakest point of the
month as OPEC production levels continued to grow and demand weakened.
Traders paid little attention to the geopolitical situation and more
towards the economic recovery of the US. This would normally increase
demand, but production in the US continues to soar to record highs as
shale facilities produced record levels of oil. Oil is expected to trade
in a range as OPEC will not meet to review production quotas until
November.
The drastic drop of the oil prices has coincided with the highest
bullish trend by the US dollar, vis a vis the basket of hard currencies,
since four years ago, and the highest against the euro since two years
ago.
Noticeable rise of supplies from the Middle East, Africa and
the United States contributed to the bearish trend of the crude prices; a
factor that has also alleviated fears with respect of forecast
disruption of the oil supplies from these regions, currently gripped
with dramatic political and military conflicts.