Commodity Daily News

Crude Oil Climbs Back To $101.50 a Barrel on Middle East Unrest

Crude oil prices gained slightly on Monday to around $101.50 a barrel, as concerns about the Middle East remained amid the lower demand expectation caused by the Japan's disaster.

Prices pared earlier losses on news that Saudi Arabia sent troops into neighbor country Bahrain to help put down weeks of protests. Concerns about the unrest in the region are likely to continue to boost prices.

In addition, oil and other commodities denominated in dollars for global trading tend to rise when the U.S. currency falls as they become cheaper for holders of other currencies. A move away from dollar-based pricing of the world's leading commodity could further weaken the greenback.

As for today, the FOMC Statement will likely determine crude's next moves, with any mildly positive elements within them likely to keep the price of oil bullish.