The price of Crude Oil climbed back above $80 a barrel in today's early trading hours despite the sudden rise in USD strength. Speculators view the sudden increase in risk aversion to be a signal that commodity prices will continue rising as a hedge against inflation. Gold prices are still climbing, and even Silver has broken through its significant psychological price level of $18 per ounce.
With commodity prices climbing, Crude Oil appears set to maintain its current price level, with the option to go even higher as the northern hemisphere prepares for the winter months ahead. Supply remains in doubt and demand still appears weak, but speculators continue to assume that oil prices are going to rise which suggests optimism for further industry growth going into 2010. Investors will have to wait and find out if these speculators were right in their assessment.