The oil price collapsed on the Arabic retaliation after the “niet” received from Russia to the proposed production cut. The scenario is dramatic, with a 30% drop in the price in a single trading session, something we haven’t seen in the last 30 years. WTI fell to $28, before rebounding to $32.
Investors are awaiting further news, but the first effect of this new “oil war” were tremendous for the barrel as they arrived in conjunction with the spread of the coronavirus, which was already having a hugely bearish impact on oil demand, and now makes the likelihood of a global oversupply almost inevitable.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.