Go Finance Report - Oil prices fell close to USD88 per barrel in afternoon trading today in Asia, having previously had rocketed through the USD90 per barrel which is the highest level since the last two years. The decrease was due to the impact of profit taking.
As quoted by the Associated Press (AP), Wednesday (08/12/2010) decreased to 89 cents to as low as USD87, 8 per barrel for January delivery contract on the trade in the New York Mercantile Exchange (Nymex) this afternoon. Previously, he penetrated USD90, 76 per barrel, which is the highest achievement since 8 October 2008.
"It does not mengherangkan, mainly because of profit taking after crude oil through the level of USD90 per barrel in New York," said energy analyst with consultants Purvin & Gertz, Victor Shum.
Oil prices rallied on Tuesday after President Obama and Republican leaders agreed to extend the tax cuts since the Bush administration. In addition, a new factor of winter hit Europe and the U.S. also raised the demand for fuel.
Shum predicted the level of USD90 per barrel would not be sustainable for the time being amid the persistence of concerns about the spread of the debt crisis of Europe to Portugal and Spain. It is feared will make the U.S. dollar getting stronger so it can push oil prices for making commodity prices more expensive for investors holding other currencies.
"The fear that China may raise interest rates also will dampen oil markets, so the possibility of trading will be in the range of USD85-USD90 per barrel," said Shum.
In other Nymex trading in the contract of January, heating oil fell 1.8 cents to $ 2, 45 per gallon, gasoline futures gave up 2.3 cents to $ 2, 29 per gallon and natural gas fell two cents to $ 4, 38 per 1,000 cubic feet. Meanwhile, in London, Brent crude fell $ 1, 09 to USD90, 30 per barrel on the ICE Futures exchange. (GoFinance)
No comments:
Post a Comment