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Oil price moving upward

Posted by Adrian on March 5, 2009

As discussed in Oil and the energy crisis is the ‘next crisis’, WTI crude on a monthly graph was showing a price incline from it’s previous lows (please go to link and click on graph). From $ 37 in January 2009, now sitting at $43 which is gain of $6 on a monthly based contract. Interesting to note that with the global economy de-accelerating at an incredibly sharp rate and the oil price plunging, the global economy will not return to speed anytime soon (minimal growth for a few years). Oil is now showing a price recovery. This could indicate that oil is being stockpiled (declining demand and also preparation for demand), which is what I think is occurring, especially from net importers of oil such as China. Also in the mix are OPECS cuts, closures of unprofitable oil companies and simmering geopolitical tension from North Korea, Pakistan, Iran and the West/Israel.

refer to graph (please click on image):

wticrude

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