Oil in Bear Market

22 June, 2017

Yesterday we saw a continuation in the drop of oil prices, which rippled out into the markets – pulling down both US and European StockВВ with it. This is likely a result of fears due to the non-OPEC countries ramping up production to cover the gap left from the OPEC+ agreement to restrict production, potentially resulting in supply outpacing demand.

Futures of US Crude saw a 14 cent drop settling on $42.39 a barrel and Brent futures had a similar movement loosing 15 cent at a price of $44.67. These are some of the lowest prices oil has experienced since November, its last peak seen in February. Since the beginning of the year until today oil has experienced a significant 20% price drop.

This is a huge influencer in traders and investors scrambling (and in turn bolstering the price of) safe havens such as the JPY and Gold.ВВ 

Yesterday Gold gained 0.5 percent – closing at $1,252.74/oz. and the Yen rose 0.3% closing yesterday at $111.04.

Other noteworthy movements yesterday, where the USD closing at 0.8950 against the EUR and the GBP losing 0.12% closing at 1.1332 against the EU’s currency.


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