Commodity Daily News

Oil Prices Advance on Heightened Chinese Demand

The price of Crude Oil found support this week as large oil consumer China increased its demand for the black gold. A barrel of Light, sweet crude traded above $98 for a short while yesterday afternoon and evening as investors viewed China's sudden binge as a sign that further growth in the global market place would return shortly. Stock market gains have also pushed the value of the US dollar (USD), which oil is valued in, slightly lower, helping to bolster the upward movement of crude.

As investors seek out risk, the value of crude oil, which has been seen trading with mixed results, jumped to a weekly high of $98.94 per barrel. A sudden stagnation in dollar values due to this week's somewhat riskier trading environment has so far assisted this price movement. Should risk sentiment hold steady this week, the prices for commodities could continue to gain.