Oil Prices Crash And Rebound After Technical Selloff

6 May 2017   Prices

Oil prices crashed on Thursday before bouncing back in trading on Friday, suggesting that the crash was due more to a technical selloff rather than disappointing fundamentals. Friday, May 5, 2017 (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) Oil prices crashed on Thursday, erasing all the gains made since the OPEC deal was announced, with WTI and Brent dropping to six-month lows. Fears over persistent oversupply, a renewed glut for refined fuels, and the inadequately slow pace of adjustment stemming from the OPEC cuts all forced a selloff. Major oil benchmarks lost 5 percent on Thursday, but have since seen a bounce back as hedge funds have now dumped all long positions. Although the drop in prices underscores the poor market fundamentals, the suddenness of the decline and quick recovery bears all the markers of […]

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