After six weeks in a downturn, crude oil prices finally see an increase
After a recent drop in crude prices that was expected to last through the coming weeks, Chinese analysts have posted surprising increases in the nation’s crude oil stocks. An almost 7% rise was recorded in the prices of China Petroleum and Chemical Corporation, the country’s largest oil refinery venture. The company, known as Sinopec for short, delivered results that more than doubled expectations, and marked an upturn amid otherwise grim market predictions.
The sudden growth in the ailing market bolstered commercial hopes that the continually lowered fuel demand will finally see a similar spike in popularity.
The fact that the euro came out on top of the dollar for the first time in days also stimulated the market considerably, causing a heightened interest in the industry’s commodities. Chinese experts stated that as global supplies begin to dwindle away in the face of the rising market, crude prices will likely start its rise back through the ranks of fuel stocks.
On the New York Mercantile Exchange, a 48 cent rise was recorded for the product in October, marking the price at $74.30 per barrel. The price fluctuated as the months went, eventually overcoming drastic drops, and settling at $74.46 for each barrel.
Unemployment benefit claims soared through the roof in the US in the past few weeks, signalling a tough time for the market. Oil prices did not wait to begin reacting to the change, dropping more than 1% in that week. Real estate purchasing numbers also sunk drastically, at a 12% decrease marking the worst turn of the market in over a year. As the recession and its lingering effects continue to affect these fields in the country, oil prices will keep plunging inevitably.
High petroleum storage numbers added to the problems, with hedge fund managers cutting bets on gasoline in the severest turns of the past few decades. Motor fuel supplies are at similarly elevated numbers, and though the rise is expected in the market during summer months, the abnormally high results are a definite cause for worry.
With such a myriad of factors affecting crude oil standings, and the present factors being so changeful, it is increasingly hard for experts to gauge the behaviour of the fuel, and its financial future, whether immediate, or more long term- based. However, recent signs of upturns in the market may be a potentially good sign for the industry still plagued by the effects of the recession.