Crude has a good track record. In countries around the globe and also in Nepal, crude oil is supposed to be one commodity that generates profit but the times have changed and the prices have started falling though the expectations are yet on the rise. As per the news agencies, the stockpiles in the United States of America of the crude oil have rose to the highest level since June, so the prices are falling. Now, as the world knows that USA is the world’s biggest oil consumer, and highest crude oil stocks in these scenarios will definitely drop the confidence of traders thus dropping down the crude oil prices too.

After the two days of gains the commodities had, the futures have slipped by almost 0.3 percent which is not at all a good sign for the healthy crude oil prices. According to the analysts, ‘The continued surplus in US domestic production will put pressure on the downside…but the Inventory levels are heading to the wrong direction.’ Though the drop in the prices has been observed in cents only now, it could soon lead to the drop in dollars too. And when the drop converts to dollars, it is not at all going to be beneficial to anybody, neither the suppliers nor the consumers. When prices fall, suppliers start holding their stock in anticipation of the rising prices, thus consumers have to pay very high prices for the product they can get in low prices.

Because the records show the expansion of the crude stock piles by 7.9 million barrels a day, the prices have come down and most frustratingly, the trend shows that it may come further down. Now, the next scheduled report of EIA is on November 14th, a day later than usual due to the Veterans Day holiday and it is yet to see what twist it brings to the story. For the current price fall, the eyeing of investors on the next round of Iran nuclear talks and possible economic reforms by the Chinese leaders are also the supportive reasons. The 10-year reform agenda by the Chinese leaders will definitely affect the prices of many commodities across the globe.