Commodity Daily News

Price of Crude Oil Hits 13-Month Low

The price of Crude Oil gained slightly in today's early trading hours after dipping to a 13-month low of $77.07 a barrel. The news of a Euro-Zone bank rescue plan has generated a boost in the value of the EUR, which in turn lends support to the price of Crude Oil. Coupled with this bailout plan is a call from Iran for OPEC to cut Oil production in order to help stabilize world prices.


Losing 47% of its value since July, the price of Light Sweet Crude is being forecasted by energy experts to continue its decline. In fact, many financial firms, such as Goldman Sachs Group Inc., are lowering their expectations for the future price of Crude Oil in 2009 to as low as $75-86 a barrel, down from previous figures of $112-120 per barrel. Traders should pay close attention to the bank rescue plans of the U.S. and Euro-Zone economies as they are laid out in more detail over the coming weeks. The news releases surrounding these bailouts will generate the most volatility in today's market and traders would be unwise to neglect their impact on the market.