No announcement yet.

Oil prices down slowly due to corona virus crisis in Europe

  • Filter
  • Time
  • Show
Clear All
new posts

  • Oil prices down slowly due to corona virus crisis in Europe

    The financial markets do not calculate the markets in Europe. Almost all countries in the Euro Zone ban many actions due to the corona virus. At the same time the oil prices remain at the same level. The reason is that the locomotive of the world industry is South-East Asia. The situation in this part of the world with the corona virus is normal and the economy is in power.
    The oil price (USOil) down from $40 to $38.40 today after the starting crisis couple of days earlier. expects to see not so big down movement to level of $34-$35 if the situation in China and rest countries in South-East Asia is under control.
    As overall the crisis with corona virus in Europe will remain very difficult with new restrictions. The situation may change after U.S. Election after 10-days.
    The trading strategy in trading with oil is to open short positions and avoid new position during the U.S. Election day.

  • #2
    The price of oil has not been dropping only on Europe but other places too.The corona virus has really brought this to a stand still. At first most people thought it was never going to affect the forex market but now it has. Forex trading is not independent. It depends on other factors to run too. Even with the slow drop there is a level of which it will not be able to drop below and we therefore still have a chance as the traders. Some trades can also consider changing the pairs they trade. The USD and EUR seem to be in a good place so far and may even be better in the future. Al we can do now is hope for the best next year.


    • #3
      The virus affected all events and all countries - this is a fact. It's just that for those assets that have always remained relatively stable, this became most noticeable. I hope that all this is a temporary event or moments that, over time, or better in the near future, will stabilize and improve and everything will be in perfect order.
      This asset was affected primarily due to the shutdown of enterprises and due to the fact that many areas reduced the amount of production, etc.
      But look at this now, look at the chart right now - this is indeed much greater stability, which is similar to what it was a year ago. The market almost always returns to its normal limits - this is the law.


      • #4
        It seems to me that the situation with the virus has already become definitely a new stability for us, and this means that soon everything will work out and everyone will get used to these new conditions and conditions. And this is a really normal situation because it happens all the time, we just did not notice it before, because we have never encountered such an incredible scale, and now it all became incredibly obvious because it affected every person on this planet and it will definitely lead to some changes and it's scary.
        But you shouldn't take it so critically and seriously. Everything is surmountable and everything can work out and sometimes without any big steps.
        Do not rush things and do not try to foresee everything for years to come. Oil, dollar and other assets show us that we need to be here and now.


        • #5
          West Texas Intermediate crude for May delivery tacked on 0.7% to settle at $59.60 a barrel on the New York Mercantile Exchange. June Brent crude, the global benchmark, added 0.7% to $63.05 a barrel on ICE Futures Europe.