Commodity Daily News

Will Crude Oil Reach $60 a Barrel this Week?

Crude Oil continues its straight bullish trend, and last week a barrel of oil saw a record price of $58.20 a barrel; a price not seen in about six months.

The first reason beyond any doubt to Crude Oil's surprising rise is the sharp drop in the U.S Dollar this week. Crude Oil is valued in Dollars and as such, any sudden movement in its value is being immediately reflected in the commodity's value as well, especially when the change is so unexpected. In addition, it has been proven over the past few months that the price of Crude Oil is highly correlated with the American equity markets. The relatively solid week that equity markets saw in the U.S had also a direct effect on oil prices, which helped it reach close to $60 a barrel.

The main question now is whether a barrel of Crude Oil will rise over $60 a barrel this week, and the answer is probably no. Current forecasts are assuming that the traveling expenses this summer will drop significantly as opposed to previous years. This will have a devastating impact on oil's value. If the upcoming weeks won't show a massive increase in traveling package orders, then a drop is Crude Oil's prices is probably just a matter of time.