According to a statement made by Edward Moya, OANDA’s senior analyst, crude oil prices are under pressure due to existing anxiety about rapid declining of a global economy, which is stimulated by concerns on a possibility of the central bank’s aggressive tightening.
As it was said in a note by Moya, the world economy is slowing down, and it affects prospective demand for crude oil, bringing some concerns.
Recent estimates suggest that reserves of crude oil in the U.S. has increased. The rise by about 2 million barrels was registered last week that ended on September 16.
The United States Department of Energy is now planning a sale of around 10 million barrels of oil now stored in the Strategic Petroleum Reserve, with a subsequent delivery in November. This procedure will expand the time limit set for realizing a plan to sell off 180 million barrels of the mentioned reserve, which is aimed at holding back fuel prices.
A certain support for the prices also is given by the current situation around the Iran nuclear deal revival, which is currently at an impasse and prevents the country’s export from getting back into the markets.