Commodity Daily News

Oil Fails To Hit $60

Crude Oil yet again failed to hit the $60 mark as the commodity recorded a relatively flat session on Monday. It rose by a healthy 30 pips to $58.31 a barrel. Considering there was a global stock market slump yesterday, this was actually a good result. The reason why the price of Crude Oil continues to be solid lately is due to renewed investor's confidence that the developed world is starting to show signs of economic recovery. This in turn translates into industry growth and increased demand for oil.

In order for the price of Crude to continue its bullish run the main global economies will need to continue to show positive signs. However, if by the 3rd quarter this is not the case, then Crude may start to slide below $50 a barrel again. In the meantime, it is advisable to follow economic news coming out of the U.S., Japan, and China very closely in order get an accurate picture of which direction the global economic situation is heading.