Archive for October, 2013

Why has oil hit a four month low?

Tuesday, October 22nd, 2013

Oil prices have dominated many of the headlines in recent commodity trading news. On October 22nd, it had been seen that recent futures have closed near four-month lows.

This has much to do with rising crude supplies within the United States. While such an event was foreseen, recent non-farm payroll data seemed to slightly hint at a brief contraction in domestic industries throughout the country.

Thus, some analysts have curtailed their predictions for oil consumption in the winter months. Although there is indeed a higher amount of oil on the open market than there is demand, some online investors may view this as a time to purchase; assuming that consumption will increase in the northern hemisphere as winter approaches.
(more…)