Crude oil is really at its nadir. Brent for the first time fell below the level of USD 100 per barrel due to the global economic slowdown that fuel demand was predicted to be down.
Brent oil for June delivery fell $ 2, 63 on the ICE Futures Europe exchange, based in London and is USD98, 61. Trading volume was five times higher than an average of 100 days to the time of day. The contract for May fell $ 2, 72 to USD100, 39 per barrel.
Meanwhile, West Texas Intermediate (WTI) futures for May delivery fell $ 2, 65 and USD86, 06 per barrel in electronic trading on the New York Mercantile Exchange. Prices fell for a fourth day. Futures trading volume nearly four times higher than an average of 100 days. WTI contract fell $ 2, 58 to USD88, 71 yesterday or the lowest close since December 24, 2012.
“Confidence evaporates in the market. Market is starting to realize the geopolitical situation worse happening around the world so that no premiums are taken into account. WTI may even go down in the USD82 per barrel,” said Jonathan Barratt Chief Executive Bulletin Baratt, as quoted by Bloomberg.
Goldman Sachs Group even pulled his recommendation to hold the oil in the long run. Because, since taking the oil from August, oil has lost nearly 16 percent.
American Petroleum Institute will release oil inventory figures today. To date, gasoline prices eceren down to $ 3, 542 per gallon. This price is the lowest price in three years.
Number of manufacturing in New York increased, though still below the market expectations. Meanwhile, the Fed reported that New York’s general economic index dropped to 3.1 months from 9.2 in March.
While China’s gross domestic product in the first quarter was up 7.8 percent from the previous year. However, the market predicts that China’s economy could grow eight percent.