Crude Oil Prices Dip Under $50 as Coronavirus, OPEC Dominate Trade

The trading of crude oil has definitely seen its worst day in a long time. Crude oil prices have fallen below the important level that makes it highly competitive with other petroleum products.

It is quite unfortunate that oil prices are in such a bad position, as this is the reason why crude oil prices are going to stay at these low levels for quite some time. A lot of people will not want to pay more than about five dollars per barrel for crude oil, as this is considered to be the ideal price level. It is also the reason why so many commodities have seen drastic price changes over the last few years.

To say the least, this is an expensive price, and it may continue to stay this way for a very long time. The only thing that can turn things around for crude oil prices, is if oil prices start to rise again. This can happen if various factors play their part and help oil prices to increase again.

One of the main factors that could eventually cause oil prices to go up again, is if the world economy starts to improve. This can happen because it is expected that China and other Asian economies, which are now dependent on global markets, will start getting stronger.

Another reason why oil prices could rise is if oil producing countries start cutting down their production to meet the requirements of the market. There are quite a few countries who have been producing oil for the last few years, but do not want to cut down their production just yet. These countries will definitely need the aid of the world market to make it get back on track.

The second reason that could make crude oil prices go up is if OPEC decides to push for higher oil prices. If this happens, then oil prices will shoot up again. Because of the economic crisis in the world economy, oil prices have been lowering over the last few months, but OPEC decided to take advantage of the situation and push for higher oil prices, which will surely come to an end sooner or later.

Another factor that could give crude oil prices a significant boost is if the US Federal Reserve decides to raise interest rates. By raising interest rates, this will definitely discourage some investors from investing in crude oil, which will definitely cause crude oil prices to drop down a bit.

All in all, it is not impossible that crude oil prices could go up again. However, one must never look at any short term thinking as the best way to determine whether oil prices will go up or down.

If one looks at the long term, one can say that crude oil prices have a fair chance of coming down soon. In fact, the drop in crude oil prices might even reach a low of five dollars per barrel.

One should consider several other factors, before making any conclusions regarding crude oil prices. It is advisable to put into consideration such factors as the rise of global demand, the fact that the production of crude oil is no longer enough to meet the increasing demand, and the ever-rising price of other commodities, including gold.

When you take into account all these facts, one can say that crude oil prices will certainly start going up again in the coming months. Before taking this as a fact, one must examine various other factors first, so that they can be sure that oil prices will not drop even further.