Crude Oil - Oil Prices Up Ahead of New Year

By IBTimes Staff Reporter | December 29 2009 6:32 AM

Crude oil prices rose to a near 5-week high on Monday, trading at $78.73 at the close of the market amid optimism of the global economic recovery. Prices have since dropped to around $78.45, but could easily gain traction again after the release of the U.S. Consumer Confidence report. A positive figure from the report would likely increase investor confidence, thereby boosting prices.

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Several other news events may also be impacting oil prices. Political unrest in Iran, the world's second largest Oil producer, appears to have driven prices up. Furthermore, severe winter weather in the U.S., the world's largest Oil consumer, has caused Oil consumption to rise, which has also caused prices to rise. With a slow trading week for currencies, it appears that Crude Oil may be injecting some much desired volatility in the market.