The crude oil price has dropped to an eight year low. The question remains, “How low is it going to go?” And when will the oil prices spike back up?
The answer to that question is, “It’s not looking good,” as the crude oil price is currently falling. In fact, the price of crude oil has been falling for quite some time now. The current decline has continued since May and is expected to continue even in the upcoming months.
Will the US Presidential election play a role in causing the price of crude oil to spike up on the FOMC decision to raise rates? Well, if Hillary Clinton wins the election, then she will not be too happy about the news coming out of Washington DC. The news has been very negative in the recent weeks. Some people say that the Federal Reserve has already taken the right steps to raise interest rates, and that this is just the beginning of something that could be a very ugly fall for the economy.
Is there enough volatility in oil prices right now to make the FOMC raise the interest rate? Well, there really isn’t much volatility. If you go back just a few years ago, crude oil prices were soaring upwards. But then the global economic slowdown hit, and the prices of crude fell off, as many other commodities did.
When the global economic slowdown hit, the news was very positive. People saw that the recession wasn’t going to last forever, and that a recovery was going to take place soon. As the news started to get better, the price of crude oil started to fall again.
It looks like we are going to see another period where the crude oil price doesn’t continue to soar as it has done recently, and the possibility of a correction in price will also probably continue to exist. If you look at the chart of the last couple of years, you’ll see that the average price of crude oil has gone up over four percent each and every month, and yet it hasn’t risen above $100 per barrel yet.
In other words, the crude oil prices have only been going up around five percent each and every month, which is far from what they used to be before the global economic meltdown. So, it seems to me that there is still a lot of volatility in the markets, which means that the cr.ude oil prices will most likely remain very low right up until the end of the year.
So, will the election play a role in causing the price of crude oil to surge on the FOMC decision? Well, it’s not looking good, but it may play a part in the eventual outcome of the election