The prices of the Oil have plummeted down by 6 percent even further marking the lower most level of the price is the past one year. The prices are seen to be dropping so significantly because of the fears of economic slowdown which are rattling the market as a whole. Brent LCOc1 which is the global benchmark for the crude was at its lowest level since last one year. Even CLc1 was at its minimum level which signified the journey of both the benchmarks towards the losses which would be more than 40% in the Q4.
Phil Flynn, who works as an analyst in Future price group said in his statement that the current happenings in the markets are increasing the fears that global economy is halting down. This would kill off any of the oil demands in the future. He also said that the reduction of the prices in the Q4 have generated a possibility that the producers of the oil will lower their production output. The crude prices in the US are at the lowest levels since June 22, 2017, because of the rumors about the possible impact of growing trade disputes between China and the United States.
The partial shutdown of the government has resulted into intensified pressures over the markets across the asset classes. The concerns regarding the growth are rapidly growing after the shutdown which began on the midnight of Saturday. The investors are seen to be flocking over the safer assets like government debt and gold instead of stocks and the crude oil. The stocks at the global level have witnessed eighth consecutive decline since Monday. The senate of the United States has not been able to break down the deadlock created by the demand of more funds by Trump for building up the wall.
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