News

November 13, 2009

Oil Price Goes Into Negative Territory Driven By Higher Inventories And Temporary Gains And Losses In The Dollar

By Eithne Treanor

The oil price sank into negative territory this week, losing more than 3 percent mid-week but gaining ground again to close the week. The volatility continues, driven by higher inventories and temporary gains and losses in the dollar. Investors were selling off and taking profit in anticipation of another hike upwards. The early trading price on Friday was above US$77.

The build-up of stockpiles was much greater than expected with a rise of 1.8 million barrels of crude according to the US Energy Information Administration.

The market was expecting an increase of around 600,000 barrels.
The positive news this week came from China with projected annual GDP growth of 10 per cent for the fourth quarter. Economic growth has stabilised in China despite the global recession and the country is looking at an annual GDP rate of more than 8 per cent with minor...