Commodity Daily News

As Demand Falters - Oil Prices Continue To Slip.

Economic concerns and fears of recession in countries like the U.S. are hampering global demand for Crude and are holding back Oil prices from the records reached. The world economy is largely flat; the only real growth is in emerging markets. Event risks, such as Hurricanes and the Georgia crisis, no longer have the potency to spike oil prices like they used to. Fundamental demand has taken the wind out of oil prices since we saw the peak at $147 a barrel.


Yet the price of U.S. Crude Oil has fallen yesterday below $110 a barrel. Prices are now around $40 off record highs of almost $150 a barrel we saw in the spring.
Crude also felt pressure from the USD, which overnight rose to a seven-month high against the EUR, which traded as low as $US1.4466. A stronger dollar weakens the attraction of Oil, which is denominated in US dollars, as a hedge on currency.