Friday, another all time record high for crude oil as it records $126.27 per barrel on unrest and militants attacking oil company infrastructure in Africa's largest crude producer, Nigeria. Nigeria is slowing down production by approximately 30,000 barrels of crude per day which is helping push crude prices higher as supply woes continue to fill the market. Adding to that, OPEC is insisting on not pumping more oil in the market as it believes there are already enough supplies in the market. Last week Friday the contract gained $2.27 as it closed at $125.96 while recording a low of $124.08 per barrel.
Today, crude oil prices slightly slip while they remain above the $125 per barrel as there is still increased demand from Asian economies and India. It is expected that US will soon have dampened demand as their growth is already slowing down and there is still an increase in inventories while at the end of this week, president George Bush is to visit OPEC while stating the current crude prices and how it is already adding to inflationary pressures to try and get them to pump more oil. The markets today opened at $125.84 as it records a high of $126.20 per barrel and a low of $125.36 per barrel.
The markets will continue their bullish wave as long as there are still supply fears and increased global crude demand. In addition to the supply and demand factors controlling the market, there was a massive amount of investment inflows as investors saw the crude oil markets have profit potential. Hopefully, Mr. Bush meeting with OPEC on Friday should ease prices if they decide to pump more crude oil in the market causing a slip in oil prices.