Oil Prices Rise After Months Of Falling
Oil prices rose on Wall Street today after months of falling from its $110 a barrel high just a few months ago. Oil rose over 5% as a shrinking inventory, US job growth and signs of an economic recover caused traders to finally buy back into the commodity.
In the latest report, inventories fell 4.7 million barrels, a difference of approximately 6 million barrels than the 1.5 million barrel gain that was expected. US jobs rose better than expected on Friday. There is also optimism that Europe's financial leaders may be able to work out a plan that will reduce the debt crisis and put a slowdown on the global recession that seems to be currently in place. This all coincides with the fact that the Dow has gone up nearly 300 points over the past 2 days after falling thousands of points over the past year.
Crude still sits at only $79 a barrel, which is still very low. Brent crude is currently trading at $102 a barrel in London. I believe that there is still a great deal of upside for the fossil fuel. Despite the fact that many politicians and companies are trying to make clean energy a priority, the fact remains that the world continues to run on oil. Oil supplies are only dropping and the price of oil will eventually have to go back up unless there is a complete clean energy change. An end to the global recession should cause oil prices to shoot right back up to over $100 a barrel.