Brent Crude Oil has recently broken below the $100 mark. While the price indicates that it seems to be oversold, it could still hit the $85 – $90 mark. The current down trend is helped by the global slow down from China to USA, the Euro Zone’s financial uncertainty and unemployment which could be on the rise. This puts further pressure on stock piles as demand for the commodity may fall further.
The double top currently in place, might have a long way to go before it reaches its bottom. Even if the Euro problems are solved in the short term, the ramifications may not be beneficial for the commodity as demand for it may take months to come back. As long as the global economical stagnation lasts, oil prices could lack the push to return to the high prices previously seen in 2007-08.
Brent Crude Oil