Commodity Daily News

The Price of Crude Oil Rallies as Libyan Output Expecting Return

Crude Oil prices rose slightly Tuesday as sentiment appeared to favor a mild uptick in global stocks following reports of monetary moves being made by several central banks. Data releases out of Europe and the US last week are still driving many investors back into safe-haven assets as many reports suggested a surprise downtick in growth among global industrial output and consumer spending. The potential return of Libyan oil also has many speculators eyeing production data and the impact it could have on the price of oil in the near future.

An expected rise in dollar values due to this week's risk sensitive environment has helped many investors ram up their short-taking positions on physical assets, but with the USD's gains not materializing in large enough numbers, sentiment appears to have the price of crude oil falling mildly late Tuesday. Should Crude Oil sentiment continue to flatten this week, oil prices may reach a decision point which forces a wide swing by mid-week; direction is still unclear regarding the swing.