This week crude oil traded at its lowest level and prices have closed on a negative note. However, the supply and demand may not be the key reason behind the plunge in crude prices.
As per the market analyst, one of reason for plunge in crude is a severe oversupply of refined products from crude, namely gasoline, while demand is diminishing. Refined product excess and market share battle will consider on crude oil. An overcorrection in crude oil demand from refiners is needed to clear product market extensions.
Recently markets have recovered some ground but oil remains very weak and low refining margins are hurting energy companies.
Some market players have said that presently trends has been down but in near term it is anticipated to go upside before driving lower again.
On Thursday, closing crude values have decreased.WTI on NYME closed at $41.14/bbl, prices have decreased by around $0.78/bbl in compared to last closing prices. While Brent on Inter Continental Exchange decreased by $0.77/bbl in compared to last trading and was assessed around $42.70/bbl.
