Another all time record high for crude oil as it reached the $139.89 per barrel due to the U.S economy releasing its economic data regarding manufacturing showing a severe decline, caused the dollar to depreciate while funds flowed into the crude markets. With the flows coming into the market resulted in the great rise we saw yesterday but then reversed to the downside showing a slip.
The great rise for the record to reach another all time record high was also a result of a fire in the North Sea output adding to the woes of insufficient supply. The contract shed $0.25 as it closed at $134.61 while recording a low of $132.84 per barrel.
Black gold prices continued their plunge due to Saudi Arabia saying they will increase output by 200,000 barrels to 9.7 million next month calming markets. Oil producing countries are trying their best to lower prices in order to fight speculative trading in which was believed to be behind the surging of prices witnessed lately. The markets today opened at $133.60 while recording a high of $134.64 per barrel and a low of $133.50 per barrel.
Saudi Arabia increasing output in July will lower prices on the short-term, but on the long-term if the dollar will remain weak, crude oil prices will remain high as more investors enter the oil markets disbelieving that the greenback will ever pick up.