Commodity Daily News

Recent Conflict over Gaza Strip has Oil Prices on the Rise

Investors almost witnessed the beginning of a price plummet for Crude Oil last week as most speculators were predicting that the Organization of Petroleum Exporting Countries' (OPEC's) production cut wouldn't be enough to quell the storm. Falling to as low as $36 a barrel last Friday, the price of Oil appears to have found some support today.

During today's early trading hours, investors witnessed the price of Crude Oil swing sharply back up to just under the $40 mark. It appears the recent conflict between Israel and the Gaza Strip has stirred the metaphorical hornet's nest that is the Middle East. Speculation about reduced supply has helped push the price of Oil upward more than the pronounced OPEC production cut did two weeks ago. If this movement sustains itself, and if the USD continues to weaken, traders may see the price of Crude Oil trade between $45-50 a barrel by January 1st.