Tuesday, 22 Mar 2011

Crude Oil Surges To $105 a Barrel on Speculations Demand for Oil Will Soar

Crude oil rose on Tuesday's trading session on speculations Japanese reconstruction efforts will boost fuel consumption, and as the unrest in the Middle-East and North Africa continues.

Crude climbed as investors speculate that Japanese oil demand will shortly recover, as Japan considers setting up a reconstruction agency to oversee repairs from recent earthquake and tsunami.

Crude surged to as high as $105.10 a barrel on Tuesday's trading session, after falling to $102.10 a barrel earlier today. Crude oil's bullish trend is also the result of the ongoing conflict in Libya and the spreading unrest in the Middle-East.

Looking ahead to tomorrow, the U.S. Crude Oil Inventories report is scheduled at 14:30 GMT. The end result is likely to have a significant impact on oil trading, as a rise in U.S. stockpiles might correct recent bullish movements.