Commodity Daily News

What is Moving the Price of Crude Oil?

The price of Crude Oil has recently been rising because of the worsening prospects for the world economy and the closure of several refineries during recent hurricanes, which reduced Oil supplies. However, Crude Oil's prices may fall as oil companies restart petroleum production plants and refineries in the aftermath of Gustav and Ike.

US Congressional leaders from both parties said they had reached a tentative agreement on the proposed government rescue plan. Since announced, this rescue package plan has strengthened the U.S. currency pushing the price of Oil further down.
On the other hand, the fact that the bailout package plan has been passed, doesn't necessarily mean that there won't be any further obstacles on the road to U.S. economic recovery. There is still much worry about the outlook for America's financial future, and its demand for Oil.

If the U.S. bank bailout plan fails to prevent an economic slowdown, the demand for food and fuel will likely go down, lowering the price of Oil even further.