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Why are crude oil prices falling in the US right now?
A little while ago, crude oil prices were plummeting with the price of the euro. Now the euro and pound are rising but crude oil prices are falling. Can someone explain the seeming contradiction? Why are oil prices falling?
SDD, crude oil prices indeed fell over a course of a few days. They have recently risen though. I suggest you recheck the US markets over the past week or so--your comment is inappropriate.
4 Answers
- I didn't do it!Lv 61 decade agoFavorite Answer
Oil prices increase and decrease with demand and supply, which in turn are reflecting the sentiments of the buyers and sellers about the future of the world economy. A pessimistic outlook of the market participants will generally lead to falling oil prices because investors expect that the industrial demand for oil will fall as a result of a depressed economy. The opposite is true that positive news and expectations will lead to an increase in oil prices. For example the recent news about the optimistic forecast that US retail sales are growing at the fastest pace in four years, combined with a decline in crude oil inventories (declining supply) resulted in an increase of the August forward contract price in New York trading by 60 cents :
- ortunoLv 44 years ago
If the U. S. dollar is going down, that's now happening, crude and oil will bypass up. dollar rises, oil and gold frequently bypass down. There additionally are different factors, inflation, recession and crude inventory, yet those are the ordinary rules.
- Anonymous1 decade ago
Speculants are not so sure about the US economy after the G20 in Toronto. The recent annoucement of the higher unemployment rate has also affected the moods.
- SDDLv 71 decade ago
They're not. $75/barrel is "falling"? Check the date on your newspaper. You may have been asleep for quite a while.