Commodity Daily News

Fay Alert Keeps Oil Up.

Crude Oil is continuing to go through mixed sessions. Since the recent slump of $111.33 a barrel, the Crude has appreciated and is now being traded around $115 a barrel.
The sharp rise in Oil prices took place predominantly as a result of the tropical storm Fay that is threatening the Gulf of Mexico. 'Fay' alert led to a large evacuation from the working staff on the Gulf, and a sharp price movement was imminent since the Mexican Gulf accounts for about a fifth of the U.S total oil production.

However, despite the recent rising prices, it is widely accepted that Crude Oil is still in the progress of a downtrend, and as long as the storm's damages remains minimal, Sweet Light is likely to resume its falling prices. Traders are highly advised to pay attention to Fay's developments as they will probably play a leading role in Oil's prices for the near future.