WTI crude oil closed for the week at $48.52. Brent closed at $50.88 a barrel on the European Futures Market. This is an upbeat outcome for last month’s projections. Where is this headed?
Crude’s trading range will fluctuate with increased volatility for the remainder of 2016. Russia war planes dropped weapons into Syria from Iran.
This escalates existing violence and may damage energy infrastructure
to the point of shutting in production sooner rather than later. Venezuela expects to double its crude oil output due to the recent price jump.
Many
predictions for significantly lower oil prices are pinned to slowing
demand as summer ends. Supply issues may govern and Middle Eastern oil
field production may drop. Recent air attacks on Libya widen the area of
impact for increased stress and war. This is not a mirage.
Expanded international conflict in Libya, Iraq, Turkey, Syria, and Iran
makes it impossible to forecast currency fluctuations and crude’s
trading zone.
How
does Middle Eastern conflict intertwine with slowing global demand,
lower revenue, and falling medium and long term bond rates? The
currency market has seen drama and forecasts are undependable due to
the lack of historical scenarios which include negative interest rate
markets. Cheaper
currency may seem to lower the purchase of crude oil , but the reality
is that Middle Eastern oil does not rely on US currency rates to make
its oil market.
The players in the Middle East are using Turkey and Syria. Russia, USA, and Britain have engaged in bombing for over one year in an area which has not declared war. There
is a large amount of oil at stake. War always eventually increases the
price of oil. Expect a new trading range over $50 until Middle Eastern
bombing by Russia is stopped. There is pressure from Washington to keep a
lid on energy prices until after the election.
©2016 ALL RIGHTS RESERVED Rebecca Stone SpeedyReads.com
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Dr.
Rebecca Stone earned a MBA in Finance from the University of St. Thomas
in Houston, a Masters Degree from the Texas Health and Science
University in Austin, BBA from the University of Texas at Austin, and a
foreign Medical Degree in Alternative Medicine. Her medical writing
includes over three hundred articles in the field of medicine and
alternative medicine. She has written three medical books available
online.
SpeedyReads
publishes book written by Dr. Rebecca Stone, including The New Drone
Juggernaut ©2015, Quantum Brain Healing ©2011, Quantum Orthomolecular
Medicine ©2011, and Horny Goat Weed, the Magic Chinese Herb ©2015. The
most recent book will be available in Spanish in the near future at
Barnes & Noble.
Her
current status at AMAZON for the Kindle book Horny Goat Weed, the Magic
Chinese Herb ©2015 reached the top 5% of paid book sales for it’s
medical category. Dr. Rebecca Stone also wrote The Undersea Adventures
of Aladin and Alibaba.
