Oil Trading at Highest in Over a Year
As one of the most basic elements of the modern economy, oil sales and production are a genuine bell weather for the economic health of the United States and most other industrialized nations where petrol based products such as diesel and gasoline are essential to trade. Crude oil has recently reached a 17 month high in New York City’s stock market as the demand for petrol has increased thanks to major growth in the service industry sector of the US economy. The recession had hit levels that closely mirrored those seen in the 1930’s, but research analysts at the Sydney, Australian firm CWA Global Markets Pty are hailing the news as a powerful indicator that the global recovery is definitely progressing due to rising prices that directly correspond with rising business and consumer demand across the world. Crude oil for May delivery alone already had reached $86.43 per barrel which is down a full 19 cents in the New York Mercantile Exchange, but then bounced back to the highest levels seen since October 8, 2008 around the time the economy took a massive nose dive. A gain of 8.8 per cent in futures this year alone is a very positive sign, say economists.
Oil demand for most of the world will be strong through out the course of 2010 with commercially held inventories of crude oil expecting to reach around a million barrels. This 10 week recovery is the longest period of gain since late in 2004 when stock piles had leveled out at 354 million barrels, nearly 7 per cent above the 5 year average.