|
Nevertheless, oil prices have stabilized at close to $50 per barrel as oil is being sought by investors as a refuge against a slumping dollar and rising inflation. Investors helped drive oil prices to record levels last summer, but deserted the oil markets during the financial crisis in a frantic flight of cash. Oil, which was at its peak above $140 per barrel in July, fell to $33 per barrel in December. The peak in the prices resulted from a liquidation of non-commercial interest. When the financial buyers exited their net-long positions, oil prices plummeted. However, the Times reported that the prices of oil have rebounded and are fluctuating between $40 and $50 per barrel. Average oil prices are expected to remain below $50 per barrel in 2009. However, a long term economic growth may eventually push that price to anywhere between $60 and $80.
On April 29, 2009, oil prices pushed marginally over $50 a barrel on expectation of seeing an end to the current global economic crisis. In other Nymex trading, gasoline and heating oil for May delivery rose by nearly 2 pennies to $1.42 and $1.33 a gallon. Currently market demand is weak and the market remains oversupplied. One impact on current prices is the fear of a global crisis in the wake of the prevailing swine flu.
More Articles :
|
