News

June 05, 2009

Oil Prices Hit A Seven Month High And Hold Their Strength As Speculation Returns To The Market

By Eithne Treanor

The oil price held strength this week as it hit a seven month high, shying away from US$70; a price not seen since last November. Global economic indicators are looking more positive, the stock market is holding up well and the weaker dollar is helping to boost prices. The trading price on early Friday was over US$69.

Oil producers are hoping for an increase in demand as optimism returns to the real economy. The jobless figures in the US have fallen in the past week, one indication that has given Goldman Sachs the confidence to claim that an economic revival will drive oil demand and push crude to US$85 a barrel given the current supply. The report went on to say that this trend would continue into 2010, pushing oil prices to US$95 as the economic recovery continues. When looking at supply, the report says...