Crude oil rose sharply during last week's trading session. Crude oil rose from $73.00 a barrel on Monday to over $80 a barrel at the moment, completing a $7 rise in a week.
Crude oil rose during last week's trading on speculations that energy demand will increase as the global economy seems to recover from the recession. Current assumptions of the Organization of the Petroleum Exporting Countries (OPEC) are that global consumption may climb by as much as 1.4 million barrels a day in the second half of the year. In addition, the drop of the Dollar during the end of last week also supported the price of oil. Crude oil is traded in Dollars, and thus when the Dollar drops against the major currencies, crude oil tends to rise in accordance.
As for the week ahead, traders should follow the major news events from the U.S. and the Euro-Zone, as this tends to affect the prices of oil the most. Traders should take under consideration that positive data is likely to create speculations for global economic recovery, and thus boost the prices of crude oil further. Traders should also follow the U.S. Crude Oil Inventories report on Wednesday as this report tends to have an immediate impact on the market.