Crude oil prices are highly volatile, can’t be forecasted
The commodities market session prices went forth and back as traders still anticipating meeting that postponed. Crude oil prices and the market is highly counting on the agreement between various members of the Organization of Petroleum Exporting Countries (OPEC). Majorly the focus is on Saudi Arabia and Russia regarding cutting crude oil production.
West Texas instrument (WTI) crude oil
- On Monday, the market in the morning started with a dip, and during the trading session, it started covering the losses.
- A lot of uncertainty seen due to the back and forth of the prices. Crude oil prices will experience a lot of volatility, as due to pandemic, there is a considerable fall in demand for crude oil throughout the world.
- Almost 80% of the world’s population is under lockdown somehow.
- Russia and Saudi Arabia might conclude, but we cannot do anything to increase the demand for crude oil in the global market. Demand will increase gradually.
- The price of 30 dollars per barrel will offer excellent resistance.
Brent crude oil market reacted in the same way as WTI.
- The Brent crude initially in the opening session was heading toward $35. However, the commodity is shown as an indication of exhaustion again.
- Ultimately, Brent crude oil prices and the crude oil market will face a lot of volatility.
- This will dispose of once price war over crude oil ends between Saudi Arabia and Russia.