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  1. #1
    Rookie Member Robert1982's Avatar

    Oil Prices Are Going Down !!!

    As we have seen recently, there is a general trend that presents a constant fall in oil prices. The reasons for that are twofold:
    1) A genuine decrease in world demand for crude oil which might indicate the possibility of a recession.
    2) An American pressure on OPEC countries not to cut supplies to keep prices low in order to exert economic pressure on Russia as a result of its aggressive policy in the Ukraine crisis.
    Nevertheless, the trend is not definite. There are some fluctuations in oil prices as the commodity is going up and down. Last week (March 22-27, 2015), there was a rise in prices until Friday on which the commodity's bullishness reached an abrupt end with significant loses. What happened last week was a direct result of the market's balancing mechanism. On Friday, investors felt that crude oil was overvalued
    and so it was time to ditch it. It will be interesting to keep record of the commodity's performances in the coming week.

    Source: FMTrader's financial reviews

  2. #2
    Legendry Member Michael Hodges's Avatar
    Demand hasn't declined, demand growth is declining and weak, plus supply is outpacing demand growth causing huge stockpiles, pplus all the political BS that's going on....... but with the global economy on the brink of turning a positive corner demand and use will pick up, plus its about to be summer in the northern hemisphere so general activity will increase.... there is going to be some downside in oil but not too much in my view...

  3. #3
    Veteran Member Dan21's Avatar
    I think the supply will not be enough to compensate in a given moment the growing demand. We are in a temporary equilibrium in these low levels and they won’t stay here for long.

  4. #4
    Legendry Member milos's Avatar
    Crude oil prices continued to fall.As the market believes that with Iran at the last moment to reach an agreement.It could lead to a reduction of sanctions and therefore an increase in production and exports from this country.In a market that is already it could lead to lower prices.As long as $48.8 is resistance likely decline with targets $47 and $45.3 in extension.

  5. #5
    Moderator Kolyo's Avatar
    I don’t think that we are heading to significant further decrease in the oil price. The last momentum move from this afternoon confirmed my view. Everything negative is already in the price and the autumn futures are traded in much higher price than the price at the moment. This will lead to a sure increase in the crude oil price in the coming months, the only thing we don’t know is the actual path that the price will follow, but I think a good strategy with fully bullish bias on weekly time frame will work perfectly this year.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  6. #6
    Veteran Member Dan21's Avatar
    I strongly hold on to Kolyo's logic since that's what I think will happen and I've already opened a long position in the oil.

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