Oil Takes Serious Dip
Oil prices have varied greatly over the coarse of 2011. Right now oil isn’t in the best shape of its existence. The price of oil settled pretty low today. Reuters explains why oil reached a new low in the past 6 weeks.
Brent trading volumes again eclipsed those of U.S. futures, which have traditionally been the more heavily traded contract. More than 760,000 Brent contracts had traded by mid-afternoon in New York, the heaviest trading since late June and 50 percent above the 30-day moving average. U.S. crude trading volumes totaled 705,000 contracts, about 4 percent above that average.
Market players said with traders focusing on wider factors outside of the oil market, such as the euro zone crisis and the economic outlook, Brent was drawing more activity this week.
Brent is viewed as a better benchmark of global conditions, as high volumes of crude from Canada weigh down inventories at the U.S. Midcontinent, where the Cushing, Oklahoma delivery point of the U.S. contract is located."
Find additional research here: http://turnkeyoil.com/2011/09/27/oil-takes-serious-dip/