1. In such a large amount of oil is necessary to nobody. Supply exceeds demand 2.Transition to electricity 3. Shale oil - another attempt at manipulation 4.Saudi Aramco - largest capitalization company in the world (another bad call for me) Many fundamental arguments can be made, but this is a virtual trading chart and it has little to do with the real world. it is a world of financial markets. There are few arguments from financial markets:
1. This is a futures oil chart. the largest players in futures oil Goldman Sachs, JP Morgan, City Bank 2. All of the world's oil is traded exclusively for dollars. this is called petrodollar. there were a couple of people who wanted to change this system, but these people are already dead. Saddam Hussein, Muammar Gaddafi, Christophe de Margerie and possibly someone else. therefore, oil is another instrument to strengthen the dollar. example for $ 100 now you can buy 2 barrels of oil and if the price is $ 20 you can buy 5 barrels of oil. The same story happened in 2014 when oil fell from $ 100 to $ 30. Saudi Arabia has been talking to the media for a year increasing oil production, as you understand Saudi Arabia does not participate in the pricing of oil prices, because we see a chart of futures oil on the market All national currencies depreciated, and the dollar strengthened. 3. most likely these instrument will be used during the next fall of the US economy 4. We moving in downtrend channel 5. Cycles