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The price of oil has collapsed to a record bottom

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Saudi Arabia breaks into the Asian market

The price of North sea Brent oil collapsed July 16, from 5% up to $71,68 per barrel. And after it failed, and futures on WTI by 4.42%, to $68.02 per barrel of, reported on the Intercontinental exchange ICE.

“Oil falls into the abyss because of the news about the proposal by Saudi Arabia for more oil supplies to Asian buyers. In the market say that the Saudis are ready to deploy a record production. This was to be expected after the decision of OPEC to increase the daily quota — it would be a mistake to think that the oil producers a few years zagorevskii their production of raw materials in the frame will now stay away from quick money”, — explained the price dynamics senior analyst at Alpari Anna Bodrova.

One of the factors influencing on Monday on investor sentiment was the publication of updated economic forecast from the International monetary Fund.

“According to the study, global economic growth remains unchanged at 3.9% in the current year. However, the forecasts for the Euro area, Japan, UK, India and Brazil has been reduced by 0.1 to 0.03%. One of the important findings of the study that you can do is that developed economies began to slow, while developing continue to accelerate. This can lead to the displacement of interest of investors towards emerging markets,” — concluded Bodrov.

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