Commodity Daily News

Has the Price of Oil Reached its Peak for 2009?

The price of Crude Oil in recent weeks has been on a steady bullish trend. However, last Friday this trend may have been breached with a downward correction resulting from a decline in stock markets. With regional stock markets declining since last Friday, market demand for oil has come under scrutiny. While the United States may have published a series of positive growth data, the Euro-Zone illuminated its continued weakness with low GDP figures. Mixed with poor performing markets, economic growth and energy demand seem higher than they should be.

Most analysts are now backtracking by stating that the uptrend in oil seen over the previous weeks was due to a surge in market optimism that saw stock markets soaring and the USD dropping. However, as markets inevitably correct themselves after optimism has run its course, true values return. The sad truth is that demand for Crude Oil is still at an all-time low, and some analysts are reducing their 2010 forecasts. If this keeps up, the current price of $57.00 a barrel may be a high point in the coming weeks.