BGK Swiber Holdings Limited
Since June 2014, the oil price has fallen by more than 40% from it $115 a barrel. Currently the oil price is hovered around $50. The decline in oil price is also leading the way for all oil related products and services. It also reflected on the stock prices for companies that are in this sector. See the chart for decline. Enclosed is Swiber Holding stock performance from 2014. Moving Average (MA) gives a good visual on the bearish trend.
July 15, 2016 Swiber Holding Limited Weekly Chart
Why the oil price is falling?
Oil price is determined by supply and demand. When the supply is high and demand is low, it sends the price down. OPEC, The Organization of the Petroleum Exporting Countries decisions shape the expectations on supply and demand. The slow down in economy has become a major reason on slowing down the oil demand, in addition, America has become the largest oil producer although they do not export but import much much less.
Will the oil price stop falling and start rising?
Sure, as said the price is governed by the supply and demand equation. When the balance changes, the price will stop falling and start rising. Will see.
Moses Stock Analysis and Scan
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