Oil plunged below 30$

EUR/USD continues its upward move in European session reaching 1.098, the highest point of the week. The pair was up 0.93% closing the European session at 1.0963.

Oil crushes today below 30$. There are 2 major reasons for this decline:

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  1. Expectations that Iran will increase oil exports as soon as international sanctions are lifted.
  2. Worries about Chinese demand.

Lifting the Iranian sanctions can push the oil prices even lower, as it will increase the oversupply.

As of 11:43 ET the WTI Crude oil was trading at 29.63 USD/bbl, which is 5.03% lower than the previous closing price. Brent Crude was trading at 29.54, representing a 4.34% decline.

The falling oil prices drove the world stocks down. The major European indices had the following performance today.

  • FTSE 100 drop 1.93% closing at 5,804.1. The index plunged to 5,769.23, almost reaching its 52 week lowest price of 5,768.22.
  • CAC 40 lost 102.73 points, closing at 4,210.16, which represents a 2.38% decline.
  • As of 5:50 PM GMT Euro Stoxx 50 was trading at 2,952.48, which is -2.37%. The index hit 2,931.24, which is the lowest price during 52 weeks.

Following the Asian and European markets the US stock market opened lower today, with all major indexes down more than 3%. Particularly, as of 12:30 PM EST, the DJIA was trading at 15,896.93 or -2.94%, Nasdaq Composite at 4,428.65 or -4.04%, and S&P 500 at 1,859.53 or -3.24%.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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