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Oil prices trading firm on US data, homing in on $90 barrel
Published on April 7, 2010 by oilprices · 3 CommentsOil prices are trading near level on Wednesday after latest US data showed that crude oil inventories grew more than expected last week and the question remains if oil prices can pass the $90 a barrel mark soon.
US Light crude oil futures for May delivery fell 37 cents to $86.47 a barrel on the NYMEX, while in London, ICE Brent crude oil futures were trading 7 cents higher at $86.22 a barrel by 1709 GMT on Wednesday.
Gains in oil futures were capped by signs oil demand in the United States is at its lowest level since 2001, averaging just 756,000 million barrels per day.
“People who are trading the oil futures in the speculation market who are rallying and predicting that the economy is going to increase tremendously,” said Former Associate Deputy Secretary of Energy Randa Fahmy Hudome.
Tags: 90, barrel, crude, data, oil, oil prices, price, trading, US
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It is not surprising to know that oil prices could reach $90 soon. The World economy started to recover recently and industrial projects which contracted during the recession will start to expand on production and on regaining their market shares.
The political dispute between the West World and Iran could lead at anytime now to a military action against Iran which will drive oil prices high madly. OPEC may tray in incraese supply, but by how much? and how this supply will control the possible increase of oil prices. factories and machines became thirsty to oil after being sleeping for more than two years now. Chine and India are both expanding, while the World oil tank is running out fast. All of these factors, beside many others will lead definitly to another increase in the oil prices.
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Demand will once again push supply and price to unsustainable and unaffordable levels. The bumpy plateu of Peak Oil is ever more evident. Colin Campbell recently put the demand destruction price at $100 per barrel. This is surely soon to be tested.
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Crude oil Prices gain as concern over a Greek default subsided and stronger-than-estimated retail sales in the U.S., the world’s biggest energy user, bolstered optimism of an economic recovery.