News

November 20, 2009

Oil Prices Seem Range bound In A US$75–US$80 Fluctuation As Uncertainties about the US Dollar Continue

By Eithne Treanor

The oil price seems range-bound in recent weeks with fluctuations either way depending on what moves the market. With lack of serious geopolitical news or technical hitches, the movement in the price is following the stock markets and the dollar. The greenback was the one to watch this week as oil tagged alongside it, up one day, down the next. In early trade on Friday, oil was still below US$78.

Global stock markets lost their shine towards the end of the week, and economic indicators in the US were disappointing. Jobless figures and housing statistics were worse than expected with analysts now questioning the slow and possibly painful path back to growth. While the majority like to think we’ve hit the bottom, their optimism is less pronounced than it was a few months ago. The oil price seems range pound in the high seventies with many technical experts grasping for indicators of any...