Oil To Correct To $55 By End Of Year – Investing.com

Oil To Correct To $55 By End Of Year – Investing.com

fell to $66, at one point yesterday falling below $65, the area of the May lows, bringing the decline since the start of August to $10 or 13%.
 
This week oil prices have fallen below last month’s local bottom, forming a sequence of lower highs and lows.

On more than one occasion in the history of , the price dynamics in the first and second half of the year have contrasted sharply: the strong rally of the first months of the year gave way to a persistent sell-off since July-September. This was the case in 2005-2008, in 2014-2015, and in 2018. The same pattern seems to be repeating in 2021.  

From a macroeconomic perspective, the situation is now like 2014, as in both cases, the Fed was on the verge of tapering. However, the critical difference is that back then, oil was already sideways for several years, against the rapid growth in our case.