|Analysis||Friday, oil prices declined as the U.S. economy, the biggest oil consumer released its consumer confidence showing that it declined worse than market expectations and this negatively impacted oil prices. As investors saw that confidence dipped, right away began to leave oil markets as they remain worried about the outlook which weighed on oil prices as funds flew out of the markets. The contract shed $0.59 closing at $76.35 while recording a high of $77.67 per barrel and a low of $75.57 per barrel. |
The U.S. stock market added points as a result of the G20 agreeing to continue stimulus packages, while earnings from companies beat market expectations. Turning to oil shares, we see that Exxon Mobil Corp. gained 0.57 points or 0.79% to $72.47, ConocoPhillips inclined 0.61 points or 1.16% to $52.83 while Chevron Corp. leaped 0.52 points or 0.67% to $77.94 points.
Today, oil prices are rising as a result of a weaker dollar which meant that now commodities are cheaper for investors as they are priced in dollars. Also prices are rising since there are speculations that global demand on oil is inclining which therefore encourages more investors to markets as they seek potential in profits despite the global recession. From the mentioned facts, we see that today the markets opened at $76.58 while recording a high of $77.54 per barrel and a low of $76.35 per barrel.
The volatility in the oil markets continues which supports the fact that investors are confused about the exact trend oil prices are taking while they continue to eye fundamental data released from major economies. From our point of view, we see prices in the long term decline led from the crippled demand and global recession that is weighing on oil prices.
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