Oil is continuing its downward trend as more bearish news continues to surface. Today media pinpointed the following issues:
- Reuters reports that Brent crude slipped below $112 today as traders focused on the negatives. Greece talks to form a coalition failed which is causing political indecisiveness across the region. Germany, the largest economy in EU is expected to release its flash Gross Domestic Product tomorrow. The effects of worsening demand of China are also weighing down on the market. Talks are expected with Iran over the coming weeks and their results will determine the flow of the future oil price.
- Forexpors.com highlights that JP Morgan Chase revealed a 2 billion dollars loss late Thursday due to a rogue trader’s risky trading. This has led investors to shun riskier assets for the safety of the US dollar which has lead to appreciation of this currency. This makes oil more expensive so demand has fallen further. In the week ahead the talks between France and Germany are closely anticipated by investors.