News

July 23, 2010

Oil Has A Volatile Week On The Back Of Financial Markets Uncertainty And Rising Stockpiles In The US

By Eithne Treanor

The oil price continued in volatile territory this week, reacting to economic news, rising stockpiles and financial market uncertainty. While the economic recovery remains fragile we can expect oil prices to move on the slightest news. In early trading on Friday, the oil price was holding above US$78.

The US Federal Reserve chief Ben Bernanke cautioned about the ‘unusually uncertain” state of the American economy when addressing US lawmakers midweek. The dollar weakened against the Euro luring back investors into oil and commodities. Equity markets saw a healthy week with the S & P 500 Index gaining more than 5 percent this month while oil prices saw an increase of more than 4 per cent.

If equities maintain this strength, some analysts are looking for higher oil prices, possibly above...