|Analysis||Friday, oil prices gained slightly despite economic data from the U.S. economy coming in worse than expectations which should have weighed on oil prices causing them to plunge. Oil demand remains weak around the world pressured from the global recession which scares investors away from oil markets causing them to flee therefore weighing on oil prices. The contract gained a slight $0.13 closing at $66.02 while recording a high of $67.09 per barrel and a low of $65.05 per barrel.|
The U.S. stock markets closed in the red territory as a result of deadbeat economic data especially durable goods orders plunged the most in seven months while new homes sales came in less than market projections and this scared investors from higher yielding assets. Turning to oil shares we see that Exxon Mobil dipped 0.23 points or 0.33% to $68.70, Chevron Corp. fell 0.05 points or 0.07% to $70.66 while ConocoPhillips was unchanged at $45.06.
As the new week took place in the crude oil markets, we see that oil prices are pressured from worries of when a recovery will take place in the U.S., the biggest oil consumer. Also over the weekend we saw that Iran test fired another missile yet this did not affect the markets much as now the weak global recovery has the attention in the markets and is considered the strong market mover. The markets today opened at $66.15 while recording a high of $66.66 per barrel and a low of $65.50 per barrel.
Investors are confused about the exact direction prices are taking while we are seeing a little rise in prices yet in our opinion, prices are heavily pressured from the global recession that is weighing on demand aggressively which scares traders away from oil markets therefore causing oil prices on the long run to plummet.