On Friday, due to the global slowdown especially in major nations like the Euro zone and the U.S. also known as the world's biggest crude consumer; black gold prices eased since demand on energy products were crippled. Also a support to the falling prices was the stronger dollar, as before investors entered the markets to hedge against a falling dollar and inflation, as the opposite of this was happening, there was reduced appeal to crude markets. The contract shed $1.24 closing at $113.77 while recording a high of $115.20 per barrel and a low of $111.34 per barrel.
Once again fears of disrupted supplies approached the market as there is an expected storm heading towards Cuba which lead people in the Gulf of Mexico to abandon platforms; this certain area is responsible for fifth of the total U.S. production. As a result of this expected storm, crude prices took a rise as investors entered the markets looking for potential in profits. Today the markets opened at $113.94 while recording a high of $115.29 per barrel and a low of $113.25 per barrel so far.
Markets are still very volatile and the story is same old same old, on one end we have the global slowdown keeping prices from rising so much, while on the other end we have fears of disrupted supplies. As the indirect relationship between crude and dollar prices prevails last week we saw prices affected as a result of an appreciating dollar, showing that investors are still very confused about market trends.