Crude Oil Futures Drop to 2011 Lows Despite Slowing OPEC Production

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Commodities Trading

: 14 November 2014

Crude oil is showing no sign of stopping its downward momentum as the bears remain in full control of both Brent and WTI.

The slide continued as OPEC remains stubborn on the fact that they will not cut production, even though the surplus seems excessive.

Gold has lacked any real direction over the last couple of days but still looks to be a bearish market as the dollar holds strong.

Look out for Advance Retail Sales and consumer sentiment figures today which will impact the dollar and may re-invigorate the precious metals market.



Commodities Trading

: 13 November 2014

Oil futures have continued to fall and are now trading at their lowest levels since 2011.

OPEC's monthly market report pointed to a drop in production, however, this was matched by rising output from countries outside of the cartel.

Gold is unchanged and trading sideways.

Presumably investors are waiting for queues from the economic data on the agenda, but with the dollar strengthening every day, the precious metal is still looking vulnerable.



Commodities Trading

: 12 November 2014

The Veterans Day holiday in the US offered crude oil prices the chance to consolidate, with the commodity clawing back some of its recent losses.

However, with Brent pushing lower this morning, WTI looks to be slipping in the same direction.

Look out for US inventory data today which will go some way to identifying how far oil might fall.

Gold has fallen almost $10 from last night's highs as the bears once again drown out any noise of the bulls sniffing out a cheap deal.

With the dollar continuing to strengthen and inflation remaining dormant, how low could we see gold trading come the New Year?



Commodities Trading

: 11 November 2014

Once again, US crude oil dropped by as much as 0.7% to levels last seen in mid-2012.

This extended run of losses signifies that global supply is outpacing demand, and forecasts show stockpiles increasing for a sixth consecutive week.

During the overnight session, gold managed to claw back some of its recent losses as the diminutive price lured investors back in and encouraged physical purchases of the metal.

Despite this, the trend for gold is likely to favour the downside for as long as the US looks likely to raise interest rates.



Commodities Trading

: 10 November 2014

Whilst WTI prices have fallen by 20% this year, overnight trading in Asia has seen the oil market pull back some of those losses.

This slight recovery has seen WTI crude return to trading at $79 per barrel.

Gold took another turn to the downside last night on expectations that US borrowing costs will increase.

After rallying on Friday from a weakening dollar, the price has since retraced to $1,172.2.

Analysts suggest that with expectations that interest rates will rise sooner rather than later, gold prices will struggle to find support in the near-term as investment demand falls.


By Jonathan Sudaria, 14 November 2014


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