Commodity Daily News

If USD Recovers Resulting from QE2, Oil Prices Should Fall

Crude Oil prices appear to have stabilized in a range-trading pattern between $86.00 and $87.50 a barrel. Rising demand from China may have had a hand in oil's recent rises, but a wider global recovery has created the conditions for a steadily climbing price of crude.

However, Saudi Oil Minister Ali al-Naimi stated in Singapore recently that oil prices appear to have found their comfort zone between $70 and $90 per barrel. If the US dollar becomes resurgent as the EUR falls, then chances are we could see a diminished price of oil in the coming trading days. Depending on the length and duration of the USD's short-term recovery, oil prices could fall to as low as $80 a barrel over the course of this week.