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WTI recent sell off

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@Syed308,

It is not that I am trying to be unhelpful when I state this but you really should research on the Internet before asking such a question. Only if you cannot find any answers or do not understand them should you ask on here. How will you verify any answer that someone posts here? 

I can only assume you have access to the internet as otherwise you would not have been able to post the question. There are times when you have to conduct the research yourself and put the hard work and time in yourself. If you have to ask such a question then trading is far more challenging and difficult, how will you cope and survive?

These are my personal thoughts on why Crude is falling. From a fundamental perspective the trade disputes we are witnessing are not helping. This US-China trade war has been going on and on Now last month US oil production was very high so supply and demand issues here as it led to increased oil inventories. The US-Mexico situation does not assist either. You also have the 'Risk On / Risk Off' situation. When you look at the price of Bonds and Gold recently then this tells me that investors / traders are switching their capital allocation from riskier assets like Oil to Gold and Bonds. We have seen a decline in Equities around the world too. 

From a technical perspective, Oil, has seen some good upside and price gains for well over 12 months so a large correction was due. This could be profit taking and new shorts being executed leading to stop losses being triggered. This all amplified the move downwards. 

There may be other reasons but they are just my personal thoughts at 5:00 am in the morning UK time. The question I have is how you are going to assess if my personal thoughts are credible, accurate or in fact even true?

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8 hours ago, Syed308 said:

Why crude is falling 

 

Put simply @Syed308  oil is needed by industry so if industry is waning that will be reflected by the price of indices going down and also cause a decrease in demand for oil.

Compare the S&P with US Oil charts below, though there will be adjustments along the way and occasional distortions by influences affecting one and not the other the two will usually be going in the same direction.

image.thumb.png.ce87d331866af05b9318be2631f48179.png

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