OPEC producers indicated a positive period for Oil demand is ahead and this helped to boost prices to the highest witnessed for more than a year and a half.
West Texas Intermediate crude oil reached US$85 per barrel at one stage of the day. This is one example of three positive days for the overall price of oil in general. It has kept a steady momentum mostly on the upside between $75 and $80. This is the best couple of days being witnessed since last summer.
There are many factors contributing to the positive outlook for the price of oil at the moment but the main one being mentioned is an increase in consumption rates most notably in China, this outlook is so positive that one analyst predicted that oil prices could go as high as $110 per barrel by 2012 or perhaps even sooner than this.
US oil also rose even though there was a rise in the value of the US dollar which would normally indicate the opposite occurring and there was also an increase in stock levels last week which would normally have an adverse effect also. However analysts feel this probably occurred because there was a large amount of investor monies pumped into oil futures. Farm futures are remaining uneventful this year and this often causes many investors to seek an opportunity in oil.Andrew Reid, Staff Writer, Gulf Jobs Market News