Commodity Daily News

Crude Oil Reaches 15-Month High

Spot crude oil continues to rise on full steam. Crude oil rose significantly this week, and is currently trading at $83.50 a barrel, marking a 15-month record high for crude oil.

Oil is rising on speculations that fuel demand will increase as imports by China, the world's second largest energy consumer, has reached a record annual total of oil consumption during December. In addition, the ongoing sentiment that a global economic recovery is in the making, creates speculations for rising demand for energy.
In addition, the weakening Dollar also contributes to the strengthening crude oil. Oil is traded in Dollars, and thus tends to rise is response to a weak Dollar.

As for the week ahead, traders are advised to follow the main publications from the U.S. and the Euro-Zone. Special attention should be given the Euro-Zone Interest Rates announcement on Thursday. In addition, traders should follow the Crude Oil Inventories report on Wednesday as this has proven to have an imminent impact on the market.