Crude oil fell today in the middle of the current situation and the political and economical changes worldwide, as Asian stocks fell sharply and also the Libyan uprising moved closer to its conclusion, which drove oil to the downside on speculations that the supply will increase to pre-Libyan unrest levels and demand will slow on faltering growth.
Crude oil opened today at $81.57 a barrel recording the intraday high at $83.52 and a low of $79.16 a barrel and is currently trading around $82.32 a barrel.
The USDIX which measures the dollar’s performance against other six major currencies opened today at 74.07 recording the highest at 74.16 and the lowest at 73.92 and is currently trading around 73.92.
Crude oil dropped as rebels entered Tripoli, the Libyan capital, sparking expectations that the uprising could be over soon. After the crisis erupted Oil prices soared as supplies from Libya, the world's 12th largest oil producer, were disrupted.
When operating at full capacity, the country accounts for 2% of global oil production, producing around 1.6 million barrels a day and its expected that the country would quickly be able to restore much of this supply.
An end to the conflict is expected to extend the fall in oil prices which have already pulled back as global growth slows.
In the meantime, the global arena is witnessing many confusing changes in addition to the global economy which lost momentum significantly during this period. And of course, the political and economic factors have a huge impact on oil prices, especially in recent times with the growing crises in the US and the escalation of sovereign debt crisis in Europe again.
Joe Biden the Vice President of the United States refused the claims which say that his country is falling where he said that the government is able to repay the debt, and reassured China of their investments in the US, which constitutes 1% of financial assets and 8% of the bonds. The fate of the continued shaky markets and result on the three largest energy-consuming countries in the world respectively, the United States followed by China and Japan, is still not clear and the vision of the future outlook of the global economy is still blurry.