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On today’s trading, crude oil price opened with a bearish gap to present additional declines and attack 45.48 level, which indicate the price attempts to continue the correct bearish bias on the near term basis, as the following correctional station is located at 44.29.

Delivery of  U.S. crude oil in October ended Friday's session at $45.72 a barrel, down $1.9, or 3.99 percent on the NYMEX. In spite of Friday's losses, New York traded oil futures gained 3.24% for the week.

Then again, the price establishes a good support base formed by the bullish channel support that its indications showed on chart at 45.05, secure by stochastic positivity that looks clearly on the four hours' time frame, giving positive probabilities to recover the main bullish track.

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On Monday, the greenback was generally steady compared to other major currencies, however, losses stayed limited during fresh expectations for a U.S. rate hike this month and as investors looked forward to statements by Federal Reserve representatives.

On Friday, oil prices decline 4 percent as greenback increases and traders reduced an unpredictably big decline  in U.S. oil stockpiles as the start of a broader trend.

On the ICE Futures Exchange in London, delivery of Brent oil for November declined $2.13, or 4.26 percent, to slow down at $47.86 a barrel. London-traded Brent futures still rose 2.52%, for the week.

On Thursday, oil had ended 4% peak following  the U.S. Energy Information Administration reported that crude stocks plunged 14.5 million barrels the previous week to 511.4 million barrels. 

Why Are Oil Prices Falling?

From the oil industry's economic ups and down, the reason of the slump is the decreasing price of a barrel of oil, which is owed to the strong U.S. greenback, OPEC, oversupply,decreasing demand and the Iran nuclear deal. In less than a year, prices have been reduced in half, attaining lows that people have not witnessed since the last worldwide recession. Prices in 2015 have improved occasionally, however, many oil executives, certain it will be more years before oil returns to 100 dollar per barrel.

The strong U.S. greenback has been the main driver for the price dropped of crude oil over for so many years.  Actually, the dollar is at a 12 year peak compared to the euro, leading to appreciations in the U.S. dollar index and the decline in oil prices.  When the worth of the dollar is strong, the worth of commodities declines, and this positions the market under a lot of stress. Worldwide commodity prices are usually in dollars and commodity fall when the U.S. dollar is strong.

The oversupply of crude oil and the declining demand. Although supply is growing, demand for crude oil is declining. The emerging countries and the economies of Europe are weakening and then at the same period, automobiles are becoming more competent, another reason that the demand for fuel to break.

Another main reason in the sudden decline in the price of crude oil is that OPEC, is reluctant to steady the oil markets.

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Conclusion:

The US greenback had a bumpy comeback week, but what matter is it made a comeback sooner. Inflation data in the UK and the US, gross domestic product  data in New Zealand, the rate assessments in the UK and employment data in the UK and Australia are prominent.

On Friday, after Boston Fed President Eric Rosengren stated that low interest rates are increasing the possibilities of overheating the U.S. economy, the dollar gained some strong point. I have to agree that slowly tightening monetary policy is applicable to upholding full employment.

Crude oil might be up again, but with all the factors on why it is declining, it might take time before it can climb up again. But not to forget, investors are unpredictable and they might change mind before the next Fed Reserve meeting.

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