After months of rising oil prices, crude has finally started to fall from record levels. Is it possible that oil below $100? At about $124 a barrel, crude is still up substantially from a year ago. But it's down 15% in just a couple of weeks, and the threat of $150 oil has faded for now.
The stock market has taken notice. Despite some not-so-great news from many banks, stocks overall have rallied. So why is oil falling? And can it continue to do so? Do you think Oil and Gas prices have peaked?
There's a simple answer to the question above: Oil prices are down sharply because oil prices were up sharply. The spike in oil has hurt consumers around the globe.
So demand for oil is finally starting to cool. Oil prices have fallen as a result. And stocks have gained ground. "It's a circular phenomenon. Oil prices go up and it affects consumer confidence and stocks go down. When oil goes down, consumer confidence increases and stocks go up. It's a little bit of a see-saw."
Eventhough yesterday closed still above USD 120.00 per barrel, we cannot judge it by saying the prices of Crude Oil cannot go up. It all depends on the whole situation to determine the next course of the movement. A break of the support level at USD 122.68 per barrel as I mention will eventually confirm the trend of the Crude Oil prices has change.
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