Oil Prices Drop Signalling Longest Losing Streak since March
Published By : 19 May 2015 | Published By : QYRESEARCH
Prices of oil slumped on Tuesday in the most recent indication that the latest rally in prices of crude may possibly have peaked.
The oil benchmark of the United States fell for five consecutive sessions, which has been the longest losing streak since the middle of March. Even though the oil prices are still up by over 30 per cent after a near six year drop that was reported in March, the benchmark has slipped 5.7 per cent over five straight sessions in the past.
Light, sweet crude for delivery in June settled from US$ 2.17 or 3.7 per cent to US$ 57.26 per barrel based on the New York Mercantile Exchange. The contract for the month of June came to an end in a settlement on Tuesday. The July contract, which is more actively traded, settled from US$ 2.25 or 3.7 per cent to US$ 57.99 per barrel.
The global benchmark Brent crude settled from US$ 2.25 or 3.4 per cent to US$ 64.02 per barrel on the ICE Futures Europe Exchange.
Ritterbusch and Associates, the energy advisory firm said in a note that the hard selloff of Tuesday should be evident that a major price decline has begun.
The key driver of the oil market over the past few days has definitely been a stronger dollar, analysts have revealed. Oil is traded in dollars and is rendered more expensive for buyers who are holding on to other currencies when the greenback gains strength. The Wall Street Journal Dollar Index tracks the dollar in comparison with a plethora of other major currencies. This index recently went up 0.9 per cent.