Oil drops on China worries, strong US dollar

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Oil prices came under pressure on Friday tracking the sharp losses in the Chinese stocks and a rise in the USD index top three figures.

    At the time of writing, the WTI Jan futures were down 1.78% or 77 cents near USD 42.25/barrel. Brent Jan futures were relatively resilient; down just 4 cents at USD 45.45/barrel.

    Both crude futures appear on track for small weekly gains, but were down by roughly 9% since the beginning of November.

    The drop was triggered by a data in China which showed fell 4.6% in October from a year earlier. This along with regulator crackdown led to a sharp drop in the chinese stocks, which weighed over oil prices.

    Meanwhile, the USD index rose back into three figures, making oil and other commodities costlier in the non-USD terms.
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