What triggers slump of oil prices (11.10.2018)

A slump in global stock markets extended into the commodity market, which is facing massive selling today. Apart from it, oil futures felt pressure aftera weekly update from the American Petroleum Institute. The industry trade group reported that US
crude stocks jumped 9.7 million barrels last week. The unexpected surge forced traders to sell
oil futures. West Texas Intermediate tumbled over 3% and
settled down below 72 US dollars a barrel. North American benchmark grade can find support
neither in the looming embargo on the Iranian oil sector nor in Hurricane Michael, approaching
the US coast of the Mexican Gulf. Brent crude oil has also come under pressure. It is trading at 81 dollars 20 cents a barrel. Investors will pay close attention to the release of official data from the Energy Information Administration. Meanwhile, the ruble has been affected by
the bearish trend of oil prices. Nevertheless, the dollar/ruble pair is trading
steadily inside the range of the recent sessions from 66.20 to 67.00. The reasons behind the steep fall of US stock
indices are not quite transparent. Remarkably, forex traders avoid panic. So, analysts suggest various causes. There is a high probability that a large market
player locked in profits that pushed the stock market into a downward spiral.

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