economy news

Oil price slide down

10.10.2014 |

For the first time since April 2013 crude oil futures have dropped below US $90 per barrel. Analysts say there are two main reasons for the drop in prices. First of all, the bombing in Syria did not bring proper results and terrorists still control some oil equities and continue dumping the prices. Secondly, there has been a strong strengthening of the US dollar against foreign currenciesagainst the background of a decline in the quantitative easing program. Today, thereare no factors for the rise in quotations. Probably, oil prices will be declining moderately, say analysts at Alpari. Traders also point to the fact that Saudi Arabia is probably going to start a price war against its competitors. Lowering ofprices for oil from Saudi Arabia means it will no longer cut production and, most likely, is preparing to fight for the market, says analyst at Again Capital LLC in New York, John Kilduff.

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