Future unclear for crude oil investments

Crude oil futures circled the $85 per barrel mark on the Asian commodities market today, after the sector got hit with the news of the International Energy Agency and OPEC both trimming down their global crude oil demand projections for 2012 and the remainder of 2011.

West Texas Intermediate crude oil prices for delivery in November lost 20 cents and settled at $85.37 per barrel on the New York Mercantile Exchange. The benchmark commodity oil has snapped its six-day winning streak on the commodity index and that infused new hope into buyers and cause a major surge in crude oil investments.

Brent crude oil futures for November delivery decreased 15 cents and now sit at $111.21 per barrel, still well above the resistant $110 per barrel threshold. The European benchmark commodity oil was salvaged from more extensive losses due to customs and labor strikes temporarily halting exports out of Nigeria and Kuwait, two of the region’s most active crude oil suppliers. However, the markets are yet to fully assess what damage Libya’s return to the sector will wreak on crude oil prices and crude oil investments.

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At the moment, crude oil futures are holding more or less strongly on the commodities market due to decreased stockpiles in the U.S. and the euro still standing above the dollar. However, unless the sector’s more pertinent and primary affecting factors are remedied, namely the ongoing the debt crisis in Europe and soaring unemployment rates in the U.S., crude oil investments will tumble back down.

The commodity index is currently in limbo awaiting the outcome of Europe’s latest stimulus plan, which is due to be unveiled at the start of November. If that strategy proves to be effective, crude oil futures will likely sustain their current upward momentum.