Commodity Daily News

Oil Prices Rising on Market Optimism, Growth Forecasts

The price of spot crude oil has dipped as low as $71 a barrel this past week. However, as of this morning, news of a speculative drop in safe havens such as the USD and JPY has helped bring commodity prices back up slightly. The price of crude oil has rebounded back above $75 a barrel as a result.

Last week's rising dollar was explained as being part of risk aversion. This week it appears as if risk aversion has begun to come to an end and the USD is expected to drop a fair amount. Optimism about a speedy recovery is back in swing and this has many speculators forecasting a rise in oil demand. If this speculation proves true then we should see oil prices reaching back towards $78 a barrel, if not higher, over the next few weeks.