Oil Rises beyond $50 a Barrel; Upward Movement to Continue?
Posted on 23. Mar, 2009 by admin in Crude Oil
As part of the weakening USD seen last week, the price of Crude Oil has seen a corresponding increase in value. The price for a barrel of Crude Oil climbed above the $50 mark last Friday and appears to be continuing in an upward direction. No doubt the quantitative easing taking place in the U.S., thereby weakening the Dollar, has carried an impact on the price of this commodity since it is traded in Dollars.
Secondly, the price for a barrel of Crude Oil is affected by supply as much as it is affected by the strength of the USD. With production cuts beginning to take effect, the Organization of Petroleum Exporting Countries (OPEC) has declared that Crude Oil prices appear to be stabilizing and may return to a more suitable price level in the nearest future. As long as the USD continues to weaken and equity markets remain in a somewhat bullish posture, the price for a barrel of Crude is not likely to go south anytime soon.
