Crude Price (CL/USD) Seeks Support As Coronavirus Spreads. Oil is the most liquid form of fuel that people could want to invest their money in. And yet, it is a very volatile one.
With an average daily trading volume of three to four million barrels, most investors are getting involved in this commodity because of its capacity to perform over time. You can buy into oil at lower prices than you invested or sell it in your hand at higher prices if you have sold a position. It’s a winning proposition.
There are times when oil prices might go down more than they go up. And the reason for this is because there is a positive correlation between global and local oil demand and supply, which will be related to the price of oil.
Central banks would like to raise interest rates to combat inflation. Well, the reality is that inflation is a risk that has become very high in the past few years. The oil prices are being driven by the economic situation, the government’s decisions, and how things are going with regards to other global economies.
Central banks are worried about the weakening economy in the United States and the downturn in the European economies. They can use this to their advantage and will do what they can to keep oil prices stable.
There are rumors going around about how the OPEC countries will take advantage of the very low oil prices and reduce their production. However, all of the countries with access to global markets will remain as they are. The oil prices will stay down.
At the moment, the crude price is still in support in the short term. Many experts believe that this trend will continue in the next few months.
Cr/USD futures contract continues to be under pressure. Some experts expect the USD to trade at around US$110 on the 9th of November, as the economic situation worsens.
Cr/USD has been under pressure for some time, as the economy is so weak. This will make it difficult for it to reach the support level.
Cr/USD is still under pressure, as the prices of crude oil are still very low. Many investors will not want to be exposed to this kind of price fluctuation. It is the only thing that is likely to decrease in the near future.
Cr/USD futures has suffered the most losses, which is worrying many traders. Thus, they are looking for other types of commodities to invest in.