Oil’s Range Trading Continues; Tension in the Middle East Rises
Posted on 23. Nov, 2009 by admin in Crude Oil
Crude Oil saw a rather volatile session during last week’s trading. By the beginning of the week, crude oil rose to $80.85 a barrel. However close to the weekend oil dropped back down, and reached as low as $76.80 a barrel.
Currently, oil is back on a rise, and a barrel of crude oil is traded for over $78 a barrel. The main reason for the oil’s recovery appears to be the growing tension between Iran and the Western nation. The nations have failed to reach agreement regarding Iran’s nuclear facilities, and in addition the Iranian military is beginning a large scale air defense drills. It seems that if the Middle East tension will grow further, the prices of oil are likely to increase as well.
As for the week ahead, traders are advised to follow news updates from the Middle East as they are likely to have a significant impact on the prices of crude oil. In addition, traders are advised to follow the major economic publication from the U.S, as the value of oil is largely affected by them.
