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| The price of WTI has dropped to its lowest level in more than a year. (Robson Fletcher/CBC) |
The value of the barrel of the most common US oil mix reached its lowest level in more than a year, as fears of a global oversupply came back to life. Likewise, it was the worst day for oil since 2015, because the price of WTI fell to $ 50 per barrel. While the price of Canadian oil and crude oil plummeted to just over $ 14 per barrel.
Descent that establishes it as a bargain
There has been a decline of 7.76 percent, which if maintained until the end of the day would be the worst day for oil in percentage terms since February 2015. It should be noted that the value of oil has plummeted by 20 percent since the beginning of the month. While the supply is growing much faster than the demand. It is possibly slowing down in part due to the ongoing trade war between the United States and China.
Phil Flynn, an analyst at Price Futures Group in Chicago, referred to high-level trade talks and said, “The market is pricing in an economic slowdown, they are anticipating that the Chinese trade talks will not go well”.
Jeff Kravetz, who is the regional investment director of US Bank Private Wealth Management, has also expressed his opinion. In fact, he said the meeting between China and the US could be key to driving all kinds of markets, from oil to stocks and bonds.
“If he can get President Trump and President Xi to get closer to their rhetoric and make some progress on the trade front, that could be the catalyst for markets to rise”, Kravetz said.
What is certain is that the Organization of Petroleum Exporting Countries or OPEC plans to meet on December 6. The cartel is expected to move to curb its supply to shore up prices. In addition, the OPEC leader, Saudi Arabia, is expected to press the group to accept a cut of 1.4 million barrels per day.
In addition, it is necessary to report that Canadian gas prices fall as crude oil continues to fall.
Source: CBC News
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