Commodity Daily News

US Data Had No Impact on Crude Oil's Falling Price

Will the price of oil continue to drop? It seems like the only question asked recently about the movement of this commodity, and is one of the more difficult to answer. Analysts are predicting exact opposites. Some say this downtrend will soon reach the bottom and hit a quick reversal. This comes in light of OPEC's recent threat to decrease production in order to calm the market if the price of Crude Oil drops below $90. Others say that oil is currently overvalued, as it has been since March, and will continue to drop because of decreasing demand, the progress in the development of clean energy sources, and the continuing airline budget turmoil. One thing that is certain, however, is that the price of oil has not stopped falling.

No event seems large enough to impact this downtrend. Hurricanes come and go, production quotas are hacked and slashed, yet still prices drop. This information points to one conclusion: the price of oil may have been overvalued indeed, and the price is now correcting itself through open market forces. In the last year, the price of Crude Oil has found support around the $84 mark and traders should be made aware of this. If indeed the price of oil is near the trough of this downtrend, it will likely happen around that mark. Today, however, Crude Oil sits at $91.96, which means traders may still have the opportunity to join in this bearish session before it reaches its final throes.