Commodity Daily News

Crude Retreats After Touching 2009 High

Crude Oil prices declined on Tuesday as bulging Oil inventories and falling energy demand outweighed fragile hopes for an economic recovery. Analysts said that even though Oil markets are trading near their highs of the year so far, the market still feels nervous about sustaining these levels. The price settled yesterday 63 cents lower at $53.60 a barrel, after hitting a high for the year of $54.83 a barrel.

Oil prices have recovered from $32.40, the lowest since early 2008. Yet prices remain down sharply from the record high above $147 reached in July, 2008. The slumping economy has battered Crude demand, driving up stockpiles and sending prices down from their record highs. However, improvements in the leading economic indicators increase traders' confidence that a return to sequential economic growth in second half of 2009 will likely support a rise in Crude Oil prices to as high as $65 a barrel.