News

January 08, 2010

Oil Price Comes Off A Bit Towards The End Of The Week But The Upward Trend Seems Likely To Continue Analysts Say

By EithneTreanor

The oil price held strong all week until gloomy economic data made traders nervous and resulted in a bit of late selling. Sluggish employment data, the pace of the economic recovery and a potential fall in oil demand is weighing heavy on the market this week. In early trading on Friday, the oil price was above US$82 a barrel.

The market was has been buoyant since the beginning of the year with a 3.7 per cent gain this week. News about higher interest rates and tighter monetary policy in China could have an impact on availability of finance for big investment. Demand in China has been leading global oil demand for the past few months and producers were hoping this would continue. The move to raise interest rates will put pressure on commodities.

The dollar gained ground this week moving some investors back to the...