Fundamental Oil Report (2009-09-08)

By IBTimes Staff Reporter | September 08 2009 2:19 AM

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The U.S. markets were closed yesterday as a result of the Labor Day Holiday yet we saw that oil prices slightly gained as a result of the stock markets gaining alongside a weaker dollar which meant that oil became a cheaper investment to traders since it is priced in dollars. Although a weak dollar should have boosted oil prices further but as a result of the holiday, trading was light while the attention is on the OPEC meeting scheduled for tomorrow in Vienna. The contract gained $0.25 closing at $67.95 while recording a high of $68.87 per barrel and a low of $67.52 per barrel.

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Since the U.S. stock markets were closed we see that oil shares on Friday climbed as Exxon Mobil gained 0.92 points or 1.34% to $69.18, ConocoPhillips rose 0.75 points or 1.69% to $44.97 while Chevron Corp. leaped 0.63 points or 0.92% to $68.96.

The highlight of this week is on tomorrow's meeting as OPEC is anticipated to keep production output steady since the U.S. summer driving season is nearly over which means that lower demand on gasoline. OPEC produces nearly 35% of the world's crude oil therefore it is a major factor in the black gold markets yet during this meeting, oil prices will not change much as output is forecasted to remain steady. The markets today opened at $67.87 while recording a high of $68.91 per barrel and a low of $67.54 per barrel.

Black gold market prices remain calm ahead of tomorrow and even if they do climb they will once again tumble in the long term as a result of the global recession that is weighing on energy products demand therefore pressuring prices.