Crude Oil Prices

August 8, 2011 by staff 

Crude Oil PricesCrude Oil Prices, Oil prices began to trade this week with sharp falls that is in tune with the market reaction to news of the weekend come from the degradation of Standard and Poor’s credit rating U.S. Today, the rate of inflation in China to be published in July.

Here is a briefanlysis and prospects of the oil market today, August 8:

On Friday, August 5 the price of crude oil (WTI) recovered from sharp falls on Thursday and an inclination of 0.29% to 86.88 y / b, which is after five consecutive working days, the price of Oil traded down.

Brent also rose 2.24% to 109.76 b /, August Brent fell by 5.32%, WTI fell by 9.2%.

S & P500 / oil prices – August update

The S & P 500, along with other stock indices around the world has declined dramatically over the last week especially on Thursday. There are now expectations that the falls will resume in the U.S. stock market, and if it were true that you can still pull down the prices of major energy products like oil prices. The correlation between oil prices and S & P500 is not reliable, but in August so far was very strong as seen in the table below, indicating that falls on Wall Street are affecting oil traders.

USD / oil prices – August update

On Friday, the Euro / USD an inclination of 1.34%, Yen USD / fell 0.62%, which means that very strongly USD depreciated against major currencies, which is the direction in line with the moderate rise in oil prices on Friday, there is the possibility that the U.S. dollar to trade today, if this is the case, could slow some of the drop in oil prices. In the following table are the correlations between higher oil prices and exchange rates. The main currencies are highly correlated with oil prices.

Prospects for oil prices:

Oil prices have witnessed a sharp downward trend in recent days in the securities markets in the U.S. also recorded sharp falls, these sharp falls in the oil market is less likely to be connected to changes in supply and demand, mainly due to the strong and rapid reaction of the market is in line with falls in the S & P 500. My hypothesis is that oil prices will continue to come down and accumulates around and 80 – and 85 for WTI and the brand and 100 – and 105 for Brent.

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