26/07/2017 OIL record beaten by DoE.

26/07/2017 OIL record beaten by DoE.

The report published today shed new light on the stocks of crude oil, highlighting their significant decline. This situation was not expected by either analysts or the vast majority of investors, so the price of the barrel peaked at the highest level at least since May, and WTI is increasingly approaching the magical limit of USD 50.

Before publishing the results, there was a widespread belief that inventories would decline by about 3.3 million, but they fell by more than 100% more, that is even 7.2 million barrels. For a month, we can observe a fall in stocks of this raw material in the United States, which is undoubtedly good news for the economy of this country. If the trend continues, it will cause the price of the raw material to increase even more, but it is impossible to say how long this situation will continue.

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Similarly, the situation may look like in case of the European Central Bank, which for some time does not seem satisfied due to low inflation. Anyway, investors will be able to use the price at this level for some time, and only the long-term crossing of the USD 50 limit will be, according to analysts, the ultimate argument for the thesis that oil can be even more expensive again.

It is certain, however, that investors using investment platforms must carefully analyze the market situation.


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