Oil prices started taking a slip yesterday as investors locked in on profits as they saw prices climbed too quick on Friday. As the greenback gained its strength back in the market, investors walked away from the crude markets since they once hedged against inflation and the falling dollar.
Prices also eased in the market as Saudi Arabia is arranging a meeting for oil producing countries where they are trying to guarantee the supply of crude oil in the market calming consumers' fears of insufficient supply. The contract shed $4.19 as it closed at $134.35 while recording a high of $138.25 per barrel and a low of $133.00 per barrel.
Anticipations of OPEC members avoiding to increase output helped to slightly bring prices up from its fall yesterday. Already OPEC believes that the rise in crude was not due to supply and demand factors but more like speculative trading as they think that there is enough supply of crude. Upon the meeting they are trying to control the soaring of prices witnessed in the market lately that negatively affected many economies. Today prices slightly rose once again as fears were no longer in the market regarding supply as the market opened at $135.02 while recording a high of $135.30 per barrel and a low of $134.66 per barrel.
The markets are very volatile as the unstable dollar with supply and demand factors continue to overcome the markets confusing investors now more than ever. If OPEC does increase supply in the market this will definitely cause prices to ease as now this will prove there is enough supply in the markets, but once again, if any tensions arise around the globe in oil producing nations, prices will start to soar again.