NewsPreviousForecastAnalysisFriday, oil prices declined heavily as a result of the euro declining to a four-year low versus the dollar, and as oil is priced in dollars, therefore oil as an investment became more expensive for traders, which discouraged them to enter oil markets. Also oil prices tumbled, as global stock markets shed points, therefore meant that there are still worries regarding the debt crisis in Europe. With pessimism in markets means that demand on energy products was going to be fewer which pressures oil prices. The contract shed $2.79 closing at $71.61 while recording a high of $74.13 per barrel and a low of $70.83 per barrel.
The U.S. stock market closed in the red on Friday as a result of negative sentiment in the market, looking at oil shares, we see that Exxon Mobil dipped 1.14 points or 1.76% to $63.60, ConocoPhillips fell 1.10 points or 1.93% to $55.84 while Chevron Corp. slipped 1.09 points or 1.38% to $77.83.
The Dollar Index which measures the dollar against six major currencies resumed its climb; the dollar is usually watched carefully in the oil markets since oil is priced in dollars. The Dollar Index is currently traded at 86.84 while recording a high of 87.05 and a low of 86.18.
Today, oil prices resumed their decline as investors continue to step out of oil markets from the pessimism therefore as funds flew out, causes oil prices to resume their decline. All eyes remain on the fiscal position of nations in the euro zone, as there are concerns that the aid provided to them by the EU and IMF worth nearly $1 trillion will not be enough to tame deficit. The markets opened today at $71.79 while recording a high of $72.13 per barrel and a low of $69.82 per barrel.