Crude Oil Plunges into Bear Market with Worst Run on Record

MARKET DEVELOPMENT – CRUDE OIL IN BEAR MARKET

Crude Oil: The rout continues for oil prices, which is on course for its longest losing streak on record (oil declining for 10 consecutive sessions) with WTI dropping below $60 and Brent cracking $70. Brent spreads have moved deeper into contango territory as investors fear over a potentially over-supplied market. Much of this had stemmed from the Trump administration announcing oil waivers for 8 countries, which would allow for continued buying of Iranian crude. This also came at a time where the US, Russia and Saudi Arabia had been boosting oil to record levels. Given that crude is now in a bear market from the October peak, eyes will be on the JMMC meeting on Sunday, where there could be increased talk of a potential supply cut from Saudi Arabia and Russia.

USD: Last night saw the latest FOMC announcement, which gave little in the way of new information. The Fed are largely in a pre-set course which will see them raise rates at December, money markets pricing in an 80% probability of a hike. Recent volatility in financial markets had been dismissed by the Fed,

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/us_am_briefing/2018/11/09/Crude-Oil-Plunges-into-Bear-Market-with-Worst-Run-on-Record---US-Market-Open.html