Commodity Daily News

Crude Oil is reaching for $53 a Barrel

Crude Oil underwent an extremely volatile session over the past week. The week began with falling prices, as a barrel of Crude Oil was traded for less than $48 a barrel. However, it went straight up from there, and a barrel of Crude Oil is currently traded for more than $51.00 a barrel.

Crude Oil has initially dropped after the International Energy Agency said that during 2009, demand for Oil is likely to fall to its lowest level in five years, as factories shut down and car sales tumble in light of the global recession. Later on Crude Oil's price had increased mainly due to the fact that the USD has limited its bearish trend. Considering that Crude Oil is valued in Dollars. A change in trends for the USD on many occasions has had the same effect on Crude Oil.

Looking ahead to this week, traders are advised to follow the news from the leading economies, especially from the U.S, and to keep in mind that the value of Crude Oil is highly influenced by the value of the USD. Crude Oil may be slightly overvalued now. A target price for the commodity may be $50.