Crude Oil & Brent Oil Monthly Fundamental Forecast August 2015

Crude Oil took a major plunge on the last trading day falling to 46.80 down by 1.72 on Friday while Brent Oil followed suit to fall 1.50 to close July at 51.81. The Chinese economy course has slowed down recently, but what’s more important is that it means that there are going to be problems as far as demand is concerned when it comes to crude oil. Analysts think that the market is probably going to head down to the $45 level, and then the $42 level again as that was the massive low in the middle of the month of March. There is no interest on my part in trying to fight what is obviously a very negative trend.

Investors in commodity markets are confronting threats from a slowdown in China, an anemic global economy and the prospect of higher U.S. interest rates from the Federal Reserve. The dollar, which has rallied this summer on expectations of tighter U.S. monetary policy, is also pressuring prices of raw materials, which are traded in the U.S. currency and become more expensive for buyers in other countries when the buck rallies.

July’s selloff touched every sector, with U.S. crude-oil prices tumbling 21%, their worst drop since October 2008, to $47.12 a barrel. Traders were caught off guard by reports that U.S. oil drilling accelerated in July for the first time since December, raising the potential for greater supplies. A nuclear deal between Iran and six world powers also opened the door to more oil exports from the Middle East.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.

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