Crude oil is trading within a narrow range amid speculations that the US economy will recover after the slowdown seen recently and these speculations are indicating a possible rise in the demand on oil from the world’s largest oil consumer.
Light sweet crude oil for October opened at $84.93 a barrel recording the intraday high at $85.42 a barrel and the low of $83.56 a barrel and is currently trading around $84.16 a barrel.
The dollar index which measures the dollar’s performance against other six major currencies dropped today as it opened today at 74.22 recording the intraday high at 74.27 and the low of 73.87 and is currently trading around 74.08.
Crude oil fluctuated after rising by 0.4%, supported by Bernanke’s optimistic remarks in the long term and that the U.S. economy despite walking at a slow pace during this period but it will recover in the long run according to Bernanke's remarks.
The Fed also said that the U.S. government has several incentive plans to support the recovery and it will be used when needed, hoping that these statements will create some positivity in world markets, especially after the projections which indicate that the world is heading into a new phase of recession.
On the other hand, Brent crude fell to $110.65 a barrel at the same time when oil refineries located in the east coast of the US survived the tropical storm Irene when it slammed into the East Coast near North Carolina this weekend and headed north to New York. The storm was blamed for at least 21 deaths, widespread severe flooding and more than 4 million homes and businesses losing power, the thing that reduced fears of a disruption in fuel supplies in the United States.