Recently investors who favor trading on the crude oil market saw a bit of good news: thanks to OPEC and several countries who export oil (but are not members of OPEC) such as Russia, as well as a slower American oil production due to the damages caused by natural disasters in the Americas, the supply of oil went down, which allowed for its price to increase. Oil managed to stay consistently above the psychological level of $50 per barrel, going as high as $56-57, reaching a two-year high in terms of price.
However, for now this has come to an end: investors were spooked by recent news from Turkey that due to the issue of Kurdish independence, Turkey might cut down exports. As a result, many traders who had open positions on crude oil deals chose to settle before they suffer any losses. After the massive profit-taking of today, the price of oil was eventually driven down.
American futures on crude oil are currently trading around $51.68, while Brent futures are at $58.17, down from their two-year record price of $59.49.
The price of oil might continue dropping, considering the United States is well-positioned to continue with its extensive shale oil extraction, which has consistently driven prices down over the past two-three years.
