Commodity Daily News

Crude Oil to Hit $75 a Barrel?

Crude Oil managed to hold above $70 a barrel for most of last week. This was owed to a variety of factors, such as China and Japan's economies improving faster than originally forecast. In fact, Crude prices reached a near-9-month high last week at just over $73.20 a barrel. This was despite fears that demand for the black gold was dissipating. Top U.S. banks, such as Goldman Sachs, upgraded their forecasts for Crude Oil. They are beginning to anticipate black gold hitting $85 a barrel by year's end.

There were, however, arguments from the other side, implicating that demand would be unable to keep up with the current price of Crude. However, since the latter half of last week, the former argument has had more strength. Trading on Friday did see Oil drop by nearly $2 a barrel to near the $70 mark, possibly owing to the bullish USD at the end of trading last Friday. If the U.S. continues to publish predominantly positive economic news, it isn't far off to say that we may see Crude hit $75 relatively soon.