Tuesday, 23 Jun 2009

 Crude Oil Set for a U-Turn!

The price of Crude Oil is set to for a bullish u-turn, according to both fundamental and technical data. It seems that the recent downward trend in the price of Crude may be short-lived, as factors on the ground signal an upward trend in the next several days for Crude.

For example, the rapidly improving global economic situation has led some analysts to even forecast Oil to hit $85 before years end. They see the current bearishness in Crude a result of investors selling the commodity for profit taking. However, a number of analysts foresee an upward trend ahead for the coming week. Crude Oil hit a recent high of $73.15 on June 11. But since then, the price of Oil has reversed slightly to just above $67 a barrel. The recent scare in the markets that the current economic slump will be prolonged did play a part in the recent sell-off of Crude. Therefore, fears arose that demand wouldn't be able to support the prices that were previously in the market. On top of this, the strong USD recently helped push down the price of Crude. The price of Crude is already up about 65 cents or 1% today at $67.37, as data from Britain and the Euro-Zone was positive on Tuesday's. The string of terrorist attacks on Oil refineries in Nigeria of the Shell Oil Company and the unrest in Iran are likely to help Crude Oil to continue today's bullishness into next week. Additionally, if positive economic data continues to be published throughout the week for the leading economies, and the USD continues to weaken, we may see Crude hit the $70 mark within the next week.