The prices for oil have continued falling…
Every day not only investors discuss the changes in prices of oil, that’s why I think this peace of news is noteworthy.
So, the prices for oil</a> futures on July, 18th have continued falling. It was the second from the beginning of week falling of the prices for oil. And it was approximately same essential, as well as on the eve. Once again the prices have fallen more than to 2 %, but this time they have already left a mark $75 for barrel.
The official prices for oil were established on July, 18th on the marks as much as possible close to the lowest prices under transactions. Thus the price of oil Brent has remained a little above $74 for barrel, while the price of oil WTI (Light Sweet) was established below this level. Results of the trades at stock exchanges contracts of the nearest month of delivery have made:
- in New York on New York Mercantile Exchange (NYMEX) the official price of future Light, Sweet Crude Oil (August) has fallen off on 1 dollars and 76 cents (-2.3 %) and was established on a mark $73.54 for barrel. (The lowest price of closing more than for two weeks) at the prices under transactions for session $73.50-76.50 for barrel;
- in London on InterContinental Exchange Futures (ICE Futures) the official price of future IPE e-Brent Crude Futures Electronic (September) has fallen to 1 dollars and 56 cents (-2.1 %) and was established on a mark $74.36 for (the lowest price of closing for a week) at the prices under transactions for session $74.30-77.29 for barrel.
But why have prices began to fall? For first two days of this week oil has fallen in price more than on 4 %. Development of a situation in the oil market was once again defined with atmosphere in the Near East. Participants of the conflict have continued on July, 18th an exchange of rocket and artillery impacts. And the Air Forces of Israel have made a strike on military base in Lebanon that for a while promoted a rise in prices on oil futures.
Nevertheless, by the end of day the price for oil have gone down under pressure of confidence (that have became stronger) of market participants that the conflict will not extend to Syria and Iran. Decrease in interest to purchases of oil futures was promoted by the announcement of the Secretary of State of the USA Condoleezza Rice that the arrangement on cease-fire in Lebanon will be soon reached. Reduction of prices on oil products on July, 18th also has proceeded.
Additional technical pressure upon the oil market has rendered on July, 18th essential falling of the prices for gold. So, despite of preservation in the world of geopolitical instability, gold this day has fallen in the price for 3.4 %. Oil and gold already for a long time bargain in pair, is persistent following one after another. Simultaneous falling of the prices for oil and on gold testified that large investors gradually deduce their actives from the market of commodity futures, considering that fact that the US dollar has grown for a week concerning euro more than on 2 %.