Crude Oil Prices lack the Support to Push Beyond $50 a Barrel
Posted on 07. Jan, 2009 by admin in Crude Oil, Forex News
Crude Oil prices have changed little after falling yesterday. Analysts forecast that gloomy economic data from the United States would make it tough for Crude prices to make a sustained push through $50 a barrel. Data released Tuesday showed that pending sales of U.S. homes dropped in November to their lowest level in at least seven years and that the country’s services sector shrank for the third consecutive month in December.
Israel’s recent incursion into Gaza, however, was seen as supportive to Crude Oil prices. While the conflict does not directly threaten any oil supplies, unrest in the Middle East can bolster prices because countries in the region pump about a third of the world’s oil. Oil prices have risen from $35 a barrel to almost $50 since the start of hostilities. Crude Oil has also gained on news that Kuwait plans to cut oil supplies to U.S. and European buyers by 10% later this month, bringing the producer in line with the Organization of the Petroleum Exporting Countries’ (OPEC) targets. The cartel has cut output three times since September in a bid to halt the recent price decline.
