Commodity Daily News

Crude Oil Price Reaching toward 2008 Highs

Oil prices have turned upward heading into this week, with the price elevating itself beyond $113 a barrel as of this morning, sparking concern that prices will reach back into the $120 range of 2008. Continued fighting in Libya is partially behind the sell-resistance among global commodities like oil, but improved refining has also helped bolster earnings among Big Oil corporations improving other elements involved in industry and oil production. Concerns about Japan's reconstruction, declining production, and ever-present nuclear crisis are also pushing economic fundamentals in a direction favoring the purchase of physical assets.

The only counterforce that could enter the market at the start of this week, however, is a resurgent USD versus its main rival, the EUR, if a Chinese revaluation becomes forestalled. If the dollar can continue to make gains this week, buyers may begin to temporarily shift out of oil purchases in favor of other assets. This is not to say oil prices will not continue to climb, only that the climb will get delayed by another couple trading days. Traders will be eyeing further events in the Middle East this week as the risk of crude oil supply disruptions could continue to spread throughout the region, especially as protests in Syria become more volatile as they have been lately.