Crude Oil Soars to $45 a Barrel
Posted on 05. Mar, 2009 by admin in Crude Oil
Crude Oil prices soared by an impressive 9% in yesterday’s trading to close at $44.90 a barrel. This advance in the black gold’s price came about as U.S. Crude Oil Inventory figures, which were released yesterday, showed that storage decreased by 700,000 barrels rather than the forecasted 1 million barrel increase. In addition, Crude prices were also helped by reports that demand from the U.S. for oil increased as of late. This led many investors to the conclusion that the U.S. may already be starting to recover from recession. This comes about as the U.S. showed some mixed figures yesterday.
The other factor which helped spur the Crude prices yesterday was positive news coming from China that they may double their stimulus plan and increase investments in infrastructure and manufacturing. The result of this was a dramatic increase of commodity prices, such as Crude Oil. Only time will tell if prices are able to hit $46 by the end of trading today. A release of a string of positive economic figures could support this price level. Therefore, traders are advised now to make some profits as the price of Crude Oil is set to remain volatile in the short-medium term.
