Crude Oil Update

July 16th, 2009 Posted in Analyst Picks, Crude Oil

Name: Dan Eduard

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Let’s be honest, Crude Oil prices have faced much of a rollercoaster ride in the past several weeks. On the 29th of June prices nearly hit $74 a barrel. However, for the 2 weeks following this, prices went into freefall. The climax was reached when Crude prices hit as low as $59.25 a barrel at the beginning of the current trading week. Since Monday’s opening, prices hit just over $63 a barrel on Wednesday. This was following the release of Crude Oil Inventories, showing that inventories slid by -2.8 million barrels of Crude. This slide in inventories was far higher than the projected -1.9 million barrels.

Crude prices currently stand at $61.91 a barrel, 70 cents down from today’s opening. This indicates yet another turn of events in Crude Oil trading. The drop today may be due to a lack of fundamental data supporting the bullish prices that we saw in recent days. Additionally, traders are weary at the moment of going bullish on Crude ahead of vital U.S. Unemployment Claims data at 12:30 GMT. Better than expected results may produce yet another twist for Crude Oil, and the black gold could yet finish higher as end of week trading nears.

Now seems to be a good time to open your trades in Crude Oil, as there is a capability of making big profits from this commodity. If traders continue to follow key fundamentals, such as China being the first country rising out of the economic crisis, a wise trader would infer from this that Oil prices have much potential as China is the fasted growing consumer of Oil. If you want to start trading Crude Oil, Gold, Silver, or currencies, now is the time to open an account with ForexYard.