Monday, January 5, 2009

Institutional Investors see oil prices at $60 for 2009

Oil markets traditionally love the unrest. The conflict in Gaza and Russia’s dispute with Ukraine over natural-gas prices offered the ground to oil prices for capping the biggest weekly gain since 1986.


As a result, last Friday crude oil for February delivery rose $1.74, or 3.9 percent, to $46.34. After that extraordinary session, last week prices climbed 23 percent, the most since August 1986. This a very good start for oil prices after a very difficult year, during which oil fell 54 percent, the first annual drop since 2001, therefore recording the biggest loss since trading started.

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