|Analysis||Oil prices yesterday surged as a result of the U.S. dollar depreciating therefore making oil as an investment cheap for investors since commodities are priced in dollars. As more investors entered the oil markets, we saw oil prices climb as funds flew in the markets, while also the Ida storm still had its effects in the markets as investors were worried that oil supplies were going to be negatively affected. The contract gained $2.00 closing at $79.43 while recording a high of $80.19 per barrel and a low of $77.77 per barrel. |
The U.S. stock markets gained as the dollar lost its grounds in the markets, turning to oil shares we see that the Chevron Cop. Gained 0.13 points or 0.16% to $77.66, ConocoPhillips rose 0.74 points or 1.42% to $52.85 while Exxon Mobil climbed $0.27 points or 0.37% to $72.85.
Today, crude prices slightly declined as the worries in the markets regarding Ida eased slightly especially after it was downgraded from a powerful hurricane to a storm. While later today, the American Petroleum Institute (API) is scheduled to release its oil inventories showing higher rise in inventories therefore revealing that demand remains weak. The markets today opened at $79.24 while recording a high of $79.50 per barrel and a low of $78.55 per barrel.
Our expectations for oil markets remain the same as we still see oil prices in the long run decline as a result of the global recession which will take some time to end. In the short term they might slightly rise from any upbeat economic data but the overall oil markets are pressured from the economic deteriorations.