Thursday , May 19 2022

Oil has just done something that has not done more than 30 years (Hint: it's not good)


A lower shock for oil since the peak in October helped crude futures futures to carve a bearish record. It is also after the US Benchmark oil on Thursday fell into the patch area, defined a drop of at least 20% from the recent peak.

Texas Western Intermediate Intermediate for December delivery on the New York Mercantile Exchange

CLZ8, -0.71%

Fell on Friday, showing the tenth consecutive decline and matching the longest stretch of the contract since a similar range between July 18 and July 31, 1984, according to Dow Jones.

The Bespoke investment group is preparing for the longest decline as the longest spectra since at least 1983 (see table below), noting that "there has never been a streak of more than 9 consecutive days when crude oil is traded on a day."

What is behind the slowdown?

An increase in production and softening of the US oil sanctions on Iran, which included concessions to large importers such as China, which helped to reduce oil prices, and only five weeks ago, future oil prices had the highest prices in years. The companies' slow income in the future also added to the dominant mood in the oil industry.

This atmosphere lent itself to De-Drapt in stocks, with the Dow Jones Industrial Average

DJIA, -0.84%

The S & P 500 Index

SPX, -1.03%

And the Nasdaq Composite Index

COMP, -1.79%

All trading is low on Friday, and European indexes, such as the European Stoxx European 600 Index

SXXP, -0.37%

And China's Shanghai Composite Index

SHCOMP, -1.39%

Also in red.

to read: The oil route has become only the bear market of crude oil

Meanwhile, Jan Brent crude

LCOF9, -0.62%

Also was declining and flirting with its own falling into bear market. Brent oil fell more than 19% from a record last October.

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