The unrest continues in the crude oil markets as prices remain above the $130 per barrel. Investors once again hedge against the weak greenback and inflation as they turn their investments to the crude oil markets. Also crude markets become cheaper for foreign investors as they hold a stronger currency while the dollar continues to fall. With massive amount of inflows entering the crude market the contract gained $1.38 on Friday as it closed at $132.19 while recording a high of $133.71 per barrel and a low of $130.16 per barrel.
Today oil prices continue to gain as supply disruptions is adding woes to economies while rising prices already adds to inflationary pressures. Although the US crude oil demand is slightly dampening as they suffer from a slowdown and high prices of food are just not helping, other economies like China has increased demand for diesel supplies as they stock up ahead of the Beijing Olympic Games in August. China has also been a great support to the surge of crude oil prices as today the markets opened at $131.68 while recording a high of $132.94 per barrel and a low of $131.59 per barrel.
What is moving the market is not only supply and demand factors this time, but also the deteriorating US dollar as we wait later on this week for US fundamental data which will help determine the trend of the greenback. The USD has been one of the factors behind the rallying of crude oil prices as it started depreciating attracting many investors to the crude oil markets.