Oil futures trading prices saw a slight increase, taking it right above $73 a barrel. Crude oil has been on the decline, losing almost 11.5 percent from $82 a barrel since the beginning of the month. It's become clear that the U.S. economy is slowing, suggesting the oil and gas demand will remain sluggish.
The rebound in the prices of crude was a result of natural gas prices falling. Some analysts said that there is a vast majority of traders who thought natural gas wouldn't go below $4 per cubic foot, and that crude oil would fall below $70 a barrel. As the gas started dropping below that level, traders started buying crude to avoid losses and cover their bets.
"Given the future prospects for economic recovery, the oil market is considered to have fallen to much, to fast. We are seeing some uptake in oil pricing, and the low 70's seem to be the near term bottom," said Victor Shum, energy analyst for Pervin & Gertz.
Showing posts with label Oil Market. Show all posts
Showing posts with label Oil Market. Show all posts
Thursday, August 26, 2010
Monday, August 23, 2010
Oil Futures Trading Taking A Nose Dive: Not Expected To Rebound
There has been much concern about the slowing demand and rising inventory of crude oil. Despite this concern, crude oil futures saw a slight gain today. It's going to become more difficult for these gains to continue though, because the U.S. demand is beginning its yearly decline.
On the New York Merchantile Exchange, the crude has traded for October delivery at 24 cents, or 0.3 percent to $74.06 a barrel. There were numerous traders who had hoped to see an incline in gasoline consumption, but that did not happen. Investors fear continues to mount as it's becoming clear that the annual Fall decline will be even more pronounced.
Earlier this month, several money managers including Hedge funds, took speculative positions on the increasing oil prices which topped almost $80 a barrel. According to the Commodity Futures Trading Commission, these money managers have now changed their tune and are leading the way out of the oil market all together.
Analysts from Societe Generale wrote, "The bottom line is that even though recent actual demand figures from key countries such as the U.S. and China remain healthy, high inventories are unambiguously bearish."
On the New York Merchantile Exchange, the crude has traded for October delivery at 24 cents, or 0.3 percent to $74.06 a barrel. There were numerous traders who had hoped to see an incline in gasoline consumption, but that did not happen. Investors fear continues to mount as it's becoming clear that the annual Fall decline will be even more pronounced.
Earlier this month, several money managers including Hedge funds, took speculative positions on the increasing oil prices which topped almost $80 a barrel. According to the Commodity Futures Trading Commission, these money managers have now changed their tune and are leading the way out of the oil market all together.
Analysts from Societe Generale wrote, "The bottom line is that even though recent actual demand figures from key countries such as the U.S. and China remain healthy, high inventories are unambiguously bearish."
Subscribe to:
Posts (Atom)
