Oil prices continue to decline, and strengthen the Oil market

Not only of the increasing strength of the US Dollar, which usually develops in the opposite direction to the prices, but also the massively weaker physical dem

Oil prices continue to decline, and strengthen the Oil market

Not only of the increasing strength of the US Dollar, which usually develops in the opposite direction to the prices, but also the massively weaker physical demand and now the "investor Exodus."

In the course of a day, the Oil prices were linked to the losses of the past trading days. A Barrel (159 litres) of North sea Brent hit a last 54,69 US Dollar. The were 26 cents less than the previous day. The price for American crude oil of the variety WTI fell 20 cents to 49.88 dollars. db Oil price WTI 49,49 USD -0,59 (-1,18%) OTC

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Virus crisis as a potential risk for the global economy and Oil demand

In the morning, the price of a barrel of US fell-Oil prices temporarily until 48,99 dollars and the lowest in January 2019 be. Since last Thursday, the prices on U.S. Oil and Brent crude fell Oil to more than nine percent. The Virus crisis is estimated to be in the market increasingly as a burden for the world economy, which could lead to a lower demand for crude oil.

expert Eugen Weinberg of Commerzbank has already recognized the signs of panic in the commodity markets. "With the new reports from Europe and the USA, the fear of a worldwide pandemic going by the Coronavirus and the financial markets," said Weinberg. He also referred to the recently stronger U.S. Dollar. The American currency is valued by investors as a safe Investment haven in troubled stock market times. Because crude oil is traded on the world market in the US currency increases the price of a rising dollar, the crude oil in countries outside the dollar area and thus slowing the demand. db Oil price Brent 54,06 USD -1,09 (-1,98%) OTC

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Already without the Coronavirus was in the world oil market already oversupplied. On the supply side, the question is will react, as the oil cartel Opec and Opec+ combined allies support States ' weakness to the feared demand. Currently, a further reduction of the delivery volume to support the price of Oil is discussed. In the next week, the countries of the Opec+ will meet to discuss the issue.

Analyst Stanzl: OPEC+ could break due to differences of opinion between Russia and Saudi Arabia are

Jochen Stanzl, chief market analyst of CMC Markets, referring to the price development in today's day and notes that the price of Oil have battered the soil formation. The market participants start with a longer period of weak growth in the demand for energy could decline. In addition, Stanzl refers to the different assessment of the risk situation by the Virus, which could lead to a break up of the extended OPEC+ Russia. Russia sees no need for a conveying amount of the reduction, Saudi Arabia would like to enforce. The OPEC+, then an important prop for the Oil price falls. The fear of the end of the OPEC+ charged the price of Oil.

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hyo/dpa
Date Of Update: 26 February 2020, 19:00
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