Oil is getting cheaper due to overall decline in the world stock markets
World prices for “black gold” during last days continue to decline against the background of a general fall in quotations in the world stock exchanges.
A number of analysts compare the collapse of the second-oldest U.S. market index – the Dow Jones Industrial Average index – with panic on a global scale. The fall of the US stock markets pushed the world's major financial markets – Asian and European exchanges – into a steep peaking.
At the same time, some other experts give more forbearing estimates, believing that this fall can be regarded as a correction of the index, because this significant decline was preceded by quite significant growth of world stock markets.
How could oil prices behave in this situation? The oil price cannot grow when the stock markets are in almost emergency situation. Yet, the situation is not as gloomy as it might seem at first glance.
Today, the price of “black gold” has gradually begun to win back losses of the first days of the week. Therefore, futures for Brent on the London Stock Exchange in the morning were trading at $67.40 per barrel. The growth against the weekly lows was 1.3 percent. At the same time, the WTI crude oil was sold at $63.80 per barrel, adding more than one percent.
Analysts note that the American Petroleum Institute (API) recorded a decline in commercial raw crude reserves in the country by 1.1 million barrels, which can also spur the growth of oil quotes.
Experts, in general, believe that there were no serious reasons for the collapse in the stock markets, and therefore the index of business activity can recover quickly enough. Therefore, the oil quotes have a great chance to rush back up.
