"While oil speculators trade in fears" - expert makes forecast for global market
A 10% drop in global oil prices occurs in the absence of a drop in demand for “black gold”.
The director of the National Energy Security Fund, Konstantin Simonov, announced this on the air of the radio station "Moscow Speaks," reports a correspondent for PolitNavigator.
"Nothing is happening in the physical market. There is a catastrophe in the oil market, but nothing has happened in the physical oil market. That means that in the stock markets, in the oil futures markets, traders are selling fear.
The price is not formed on the "physics" market. Nothing has happened: the Chinese economy has not collapsed physically yet, the demand for oil has not collapsed. We have no data that the demand for oil has collapsed in an instant.
But fear as the best selling tool works 100%. Oil futures speculators use the information avalanche,” Simonov said.
At the same time, he believes that the negative forecasts are quite realistic. This is a tariff war, trade restrictions, production restrictions, and a sharp decline in oil consumption in China. Accordingly, the world oil market will shrink.
English version :: Read in English: "While oil speculators trade in fears," an expert makes a forecast for the global market.