Futures on Crude oil price trend continue to be downward during the session on Thursday. The fear of a global oversupply of the raw material, the strong USD and concerns about the state of China’s economic system has led to a drop in oil prices and last trading session. The global oversupply remains among the key factors that have a negative impact on the price of oil. Record production levels of several members of OPEC, Russia and high production values in the US have pushed market participants to remain passive in the long positions of the raw material. In addition, expectations of an increase in exports of Iranian oil manage to influence and future predictions at the price of oil.
The USD continues to perform convincingly against a basket of major currencies, and this is a bearish sign for commodities denominated in the greenback. Expectations that the Federal Reserve will raise interest rates in September helped the USD to return to the green territory. Moreover, the economic difficulties of the second largest consumer of oil, namely China undermines crude demand. The crisis in the stock market in the country has also led to indications that consumption of crude oil will decrease significantly. The global factors continue to keep oil prices to lower levels. The lowest closing levels for 2015 may soon be reached, and analysts predict that the price could fall below 40 USD per barrel and even test the 35 USD per barrel.
Futures on light sweet crude for delivery in September closed at a level of 44.75 USD per barrel. This is the lowest price since March so far. For the past session decline was 1.1%. The price remains below the major resistance at 89 and 200-period moving averages. According oscillator Stochastic, the price is in oversold zone, which would give indications of interruption to the fall, but the global situation does not allow it.
