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Brent oil price trading lower, is double dip on it’s way?
Published on June 22, 2010 by oilprices · 1 CommentBrent crude oil prices are trading lower at close on Tuesday as investors and economists try to work out if a double dip global downturn is on it’s way.
In London, Brent crude oil futures for July 2010 delivery are trading lower at $78.04 a barrel on the ICE Futures Exchange.
As the US dollar regained some market favour again today, Brent crude oil lost all earlier gains and ended in the red and hovering around the $78 per barrel mark.
The truth is that the fall in the price of oil could be an indication of a significant slowdown ahead in global economic oil output.
The price of commodities and oil could collapsed because the odds of a double dip recession are great. That cannot be spun into good news for global consumers. The US dollar has increased in value only when measured against other fiat currencies, as it continues to lose ground against gold prices.
The increasing supply of US dollars is not enough to overcome the anticipated decline in demand for oil, therefore, the global recession will likely become more severe, as it has causes oil prices to decline, despite the fact that the US dollar is actually losing its purchasing power right now.
Tags: brent, crude, crues oil prices, downturn, global, oil, oil prices, prices, trading
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The double dip will be caused by oil traders jacking up the price ahead of any recovery.
Every time gasoline approaches $3 per gallon, we cut back more and so does everyone else that uses oil, this is why we can’t make any headway, someday the powers that be will realize that speculation by hedge funds and institutional investors causes these spikes and disrupts any recovery.