Eight biggest weekly gain since the market outlook, rising oil prices will remain with the status of
The second round of economic stimulus the Fed last week unveiled up to 6,000 billion purchase of the scale of public debt exceeded the expectations of investors, the news, the dollar index fell sharply on Thursday hit a 10-month lowest level, while the bulk goods in the flood of liquidity is expected to occur under the broad based.
Cumulative increase in international oil prices as high as 6.7% last week, for eight months the biggest weekly gain since become commodities market led the Zhou Taizong varieties.
International oil prices last week, "five with Yang", the New York Mercantile Exchange (NYMEX) 12 month crude futures closed at $ 86.85 on Friday / barrel, its highest close this year, more than $ 86.84, and recorded in October 2008 8 at the highest settlement price since. Disk up to $ 87.22 / barrel, for the October 9, 2008 the highest level since.
Cumulative increase in international oil prices as high as 6.7% last week, for eight months the biggest weekly gain since become commodities market led the Zhou Taizong varieties.
U.S. launch of the second quantitative easing, the dollar last week to promote the general rise in commodity prices. Meanwhile, the Organization of Petroleum Exporting (OPEC) Secretary General Badri said on Thursday that $ 90 oil will not hurt global economic growth, the market speculation that OPEC will not take action this week against the rising oil prices, which boosted oil price. But some analysts believe that the international oil prices last week, led mainly because compared to other varieties of the early gains for small, the market outlook will remain with the rising price of oil status.
The current oil market fundamentals are not optimistic that OPEC currently has more than 500 million barrels / day of spare capacity, oversupply of crude oil in the overall pattern. While crude oil inventories high, NYMEX crude oil futures for delivery in Cushing inventories as of November 2 has substantially increased in the week, reaching 36.73 million barrels to 3483 million barrels higher than the historical average.
Accumulation also caused oil prices
In a situation of broad based commodity prices, caused by speculators hoarding is one of the reasons prices rise further, while the higher cost of crude oil storage, so the oversupply of crude oil in the case of the speculative demand for crude oil spot will be weakened, hoard Oil behavior will be substantially reduced.
Everbright Futures analyst Liu months that no significant economic recovery in the U.S. and Europe before, as long as a large spare capacity of OPEC, crude oil inventories remain high, oil prices would be difficult to have a more substantial increase. But in the long run, once the United States, Europe real economic recovery, will be a substantial increase in demand for crude oil, supply and demand pattern of fundamental change occurs, the energy market investors worried about supply disruptions appear simultaneously in the monsoon season, or if the geopolitical factor temperature, then oil prices would rise sharply, back goods industry today. (Man Winter)