Written by Ameer Muhammad Jaffrey Friday, 26 March 2010 04:26
Crude oil dropped towards $72.85 per barrel due to uneven trade while Dollar is strengthened against the euro. Since late in the first week of January, petroleum spot and futures prices have fallen by about $9 per barrel. In this regard, manor shift in winter weather has impact on heating fuels in the United States and globally, is one factor that effect crude oil market. There have been other factors including slow economic recovery that will impact on petroleum demand. As from the OPEC narration, there had been expected to rise in production by the G-11 members dependent on oil yield limit.
There will be more pressure on crude oil, as large inventories of crude oil in US and drop of Chinese imports. Hence, United States is the world largest oil consumer, increased by 7.2 million barrels to 337.6 million barrels in the week to Feb 5. In spite of all this, recent coldest weather will keep enforce to significant heating demand. Further more, EIA is also interested in assessing the role of other market influences, such as speculation, hedging, investment, and exchange rates.
Now, oil analysts say that prices are expected to float above lows as technical support levels on US crude and the $70 a barrel psychological level put off further fall. Other reason is geographical tension in Iran nuclear program could emphasize oil prices.
Crude Oil Diagram:
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X-axis
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10.00
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12.00
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14.00
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16.00
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18.00
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20.00
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22.00
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12.00
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2.00
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4.00
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6.00
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8.00
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10.15
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11.50
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Y-axis
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72.50
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72.50
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73.00
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74.00
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74.50
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75.00
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75.50
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