Commodity Daily News

Recent Price of Crude Oil Not Seen Since Last October

It has been one year since the price of Crude Oil reached the price where it currently sits. The difference comes from the direction the price of this commodity is moving. Last October, when Oil hit $82, it was beginning a significant upward trend which ended in July at $147 a barrel. At the moment, the price of Crude Oil is on a major downward trend which analysts are predicting won't end until it sinks as low as $50.

Speculation has come to play a major role in spot trading recently. The expectations of a production cut from OPEC in November have some investors worried that the price of Oil may see a premature rise as a result of this speculation. Price increases are not necessarily the aim of OPEC. Rather, stabilization in prices is the objective as movements, such as those seen over the last year, are unsustainable and potentially damaging to the demand for Crude Oil. Price jumps also generate a stronger motivation to those in search of alternative fuel sources, which cause further deterioration to demand and price value for traditional fuel sources like Oil. Also, with a strengthening dollar, Oil is continuing to see depreciation to its dollar value. Unless something occurs which reverses this trend, the price of Oil will continue to fall as analysts are forecasting.