Oil Prices Vary
The price of crude oil ended vary on Thursday (Friday morning EDT), u.s. oil with a bit of "rebound" (turning up) from a slump driven by continued concerns about high production and oversupply of crude oil globally.
The benchmark us light sweet crude or West Texas Intermediate (WTI) for September delivery closed at 41,14 u.s. dollars a barrel on its last trading day of September contracts on the New York Mercantile Exchange, up 34 cents from Wednesday's closing.
Meanwhile, Brent North Sea crude oil for delivery in October, international reference, fell 54 cents to settle at 46,62 u.s. dollars a barrel in London trade.
U.s. oil prices or WTI has fallen more than 30 percent from its highest level this year in June. "Rebound" small on Thursday due to the weakening of the dollar, said Gene McGillian of Tradition Energy.
A weaker greenback makes crude oil that dihargakan in dollars cheaper, so tends to stimulate demand.
"We reached a level at which the selling action may seem a little excessive and I think the market is trying to find a foothold," he said.
McGillian noted U.S. futures contracts had fallen to as low as 40.21 dollars a barrel earlier in the day, the lowest level in more than six years.
"It seems as though every time we get some kind of information ' bearish ' so the market continues to move lower," he said, stressing that the market will monitor closely the calculation of weekly u.s. oil on Friday.
Oil services company Baker Hughes will publish weekly reports on the number of active u.s. oil rigs, which market observers see as an indicator of production and the demand for crude oil.
McGillian said that with WTI approached 40 dollars, risk/reward ratio in the market starts to turn towards production.
Signs that the supply of crude oil could begin to fall due to the reduced drilling in the u.s., increased geopolitical risks, and any indication that China's economic slowdown would be brought under control, can change the tide of the price, he said.
"The market is vulnerable to changes in direction, that's why the action of selling has been slightly slowed down," McGillian said.
On the other hand, Citigroup see WTI may fall to 32 us dollars per barrel.
"The oil Balance showed a surplus of supply further along the 2015, raises the question of how far the oil will go down," said us banking giant that in a market comment, adding that reaching the lowest level of 2008 at 32.40 dollars per barrel "is a reality that makes sense."https://www.mql5.com/en/signals/120434
