A spiky drop down in the Crude oil prices has raised the concerns of the international investors for potential risk.
The market for crude oil has become fully matured since the recent financial crisis hit the global economy in 2009. Since last three weeks, the prices of Crude out observed a constant decline with an average rate of 28.3%, from the boom to bust which is an alarming situation for potential investment.
After recovering from the dreadful economic recession, the prices were shooting out by 155% before recent tailing off. However, the next three intervals showed the average increments of 51.7% in prices of oil prior to setting off the trough.
The current sell-off has already run an abnormally long 398 days. From the last top, oil prices are now down by almost 23% (Oct. 8, 2014). The recent slump is continued to run since more than a year ago. The oil prices have further decreased to 23% in Oct, 8, 2014.
The prices remain fluctuated in West Texas Intermediate between $70- $105 for the last three and a half years. This is the lowest crude oil price than ever in a year when it closed this Wednesday indeed.
All in all the previous periods have not been very friendly for the traders, so now is there time to bounce back and get on track! The decline in oil prices, and the long duration of this trend continuation has made it very feasible for the end-traders to benefit from the current market conditions… buying from the US Oil Fund L.P. (USO), or the iPath S&P GSI Crude Oil Total Return Index Medium-Term Notes, Series A (OIL) ETN. The past reading reveals that the investor will have an opportunity to earn almost 20%-50% profits over the trading of crude oil’s upcoming rally.