Commodity Daily News

Crude Oil Recovers - Back to $75 a Barrel

Crude oil prices surprisingly rose last week. After dropping below $70 a barrel for the first time in 2-months, crude oil erased some of its losses, and a barrel of crude oil reached $75.48 on Friday.

It appears that crude oil prices rose due to optimistic sentiment that global demand for energy will increase as the leading economies are recovering from the recession. In addition, the ongoing positive data from the U.S. economy seems to be the main reason for crude oil's rising trend. The U.S. is the world's largest energy consumer, and thus its recovery is likely to boost demand for oil. In addition, tension in the Middle East, as Iranian troops occupied an oil field in a disputed border area with Iraq has also contributed to the rising oil prices.

As for the week ahead, traders are advised to follow the leading economic publications from the U.S. as this has a large impact on commodities prices, especially crude oil. In addition, traders should also follow the U.S. Crude Oil Inventories scheduled for Wednesday. This report usually has an instant impact on the market, and traders should be prepared.