|Analysis||Friday oil prices dipped as the dollar gained versus major currencies and this reduced the appeal of oil especially since commodities are priced in dollars. As there were fewer investors interested in oil as an investment we saw that prices have eased their gains. The October contract shed $0.43 closing at $72.04 while recording a high of $72.66 per barrel and a low of $71.27 per barrel.|
The U.S. stocks last week ended in the green territory as a result of Procter & Gamble and HP recommended the investors should buy stocks and this boosted the equity markets as investors gained enough confidence to enter stock markets. Turning to oil shares we see that Exxon Mobil gained 0.15 points or 0.21% to $69.99, Chevron Corp. rose 0.67 points or 0.93% to $72.64 while ConocoPhillips leaped 0.10 points or 0.02% to $46.80.
Today, prices continue to ease their gains stepping further away from the 13-month high that it posted last week, as there are anticipations that prices might have climbed too much regarding economic data. As worries appeared in the oil markets, weighed on oil market prices as investors started to step away from markets. The markets today opened at $71.78 while recording a high of $72.20 per barrel and a low of $71.30 per barrel.
As we prices plunge supports our point of view that we have been stating lately in which we believe that as long as the global recession remains, this will weigh on oil prices yet there might be a temporarily incline if there are any upbeat economic data from major economies.