Oil prices have taken a dip, ending last week on a bearish trend. The world is preparing for an impending glut of black gold and that sentiment alone is putting serious pressure on the oil price chart. In addition to that, major oil producer Saudi Arabia has slashed its prices further adding to the bearish tendencies in the oil chart analysis.
What’s more, the world’s second-largest economy China has reached its storage limits, which is another grim indicator for the crude oil price in 2020. Demand is also dropping, which isn’t helpful for the oil price analysis either. And more selling pressure in the oil price chart analysis is also coming from concerns surrounding a potential second wave of COVID-19.
WTI oil in 2020 continued to fall on Monday’s trading session, as well. However, the drop in the WTI oil price wasn’t as significant as last week’s figures. But there’s little doubt that the crude oil price will continue its decline throughout the rest of the year. And seeing as how OPEC’s latest report revealed that demand had plunged more than anticipated, the question is just how low the oil price will drop in the coming weeks.
And as if the above factors weren’t enough, it’s clear that the world is turning away from fossil fuels in favor of renewable energy sources. Investors are more and focused on renewables, with the oil analysis being left on the backburner. So with all these geopolitical developments around crude oil, 2020 may be the beginning of an oil glut era.
Watch the full video for our take on the WTI oil price forecast and our detailed oil price analysis (September 2020). So stay tuned to find out what the oil price forecast next week might look like. And don’t hesitate to let us know in the comments what your take on the oil price today is.
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