Crude Prices Fall on Inventory Surplus Fallout

Will Slowdown Push Crude Below $50?

A weak global economy could spell trouble for crude oil prices. The U.S. and China are the world’s largest consumers of crude, and with both economies experiencing a slowdown, crude prices could continue to fall. The U.S. economy grew by just 2.0% in Q2, compared to growth of 3.1% in the first quarter. The trade war with the U.S. has taken a toll on China’s economy and the manufacturing sector has been in contraction mode as exports have fallen off. Is crude headed to $50? This support level has not seen action since December. Although the trend for crude is lower, instability in the Persian Gulf could quickly reverse the recent losses sustained by crude. Tensions between Iran and the U.S. have eased ever so slightly, but any negative developments could cause investment jitters and send crude prices higher.