Global Demand for Oil May Continue Falling; Will its Price Follow?
Posted on 20. Apr, 2009 by admin in Crude Oil
After last Friday’s jump in oil prices, the cost of buying a barrel of Light Sweet Crude has apparently begun to fall after reports showed that the U.S. economy is still forecasting a contraction. With the world’s top oil consumer declaring that it’s demand for Crude Oil is going to continue falling, and with current production levels being estimated as too high to support prices, traders may be seeing the start of a new downward trend in the price of Crude Oil this week.
Starting last Friday between $51 and $52 per barrel, the price of Crude Oil subsequently jumped to as high as $53 by mid-day. However, during today’s early trading hours, the price of Crude Oil has apparently begun to decline and is currently trading at $51.50. With a few analysts claiming that oil remains slightly over-valued, we could see a sell-off in black gold through late-afternoon today.
