Financial Freedom Expert

NYMEX crude oil prices tumbled to 3-month lows on Fri [14 May 2010] at the end of a volatile week in which the market was hit by eurozone economic concerns and a strong dollar. NYMEX light sweet crude for Jun 2010 delivery closed at $71.61 per barrel. The price had tumbled to $70.83, the lowest level since Feb 2010, before recouping some of its losses. Prices fell when American crude stockpiles rose by 1.9 million barrels, more than double the amount forecast by analysts. Crude oil prices had already collapsed by more than 10% last week as the market was rocked by euro contagion fears about the Greek debt crisis, a stronger dollar and sliding global stock markets.

The oil market had begun the week on a bright note, soaring on Monday after a $1-trillion EU-IMF eurozone rescue plan eased market concerns over the eurozone financial crisis.

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Oil prices rallied for a third straight day on Wednesday [12 Jan 2011], climbing in London to more than two-year highs, as the key Alaskan pipeline remained shut following a weekend leak. NYMEX crude oil prices, which gained nearly $4 since the beginning of the week, rose as high as $92.39 in trading during the day. In London, Brent North Sea crude oil futures for Feb 2011 delivery settled $98.12, peaking earlier at $98.85, the highest level since early October 2008. Prices pushed higher after the US Department of Energy reported American crude stockpiles sank by 2.2 million barrels last week. The decline was sharper than expected, suggesting stronger demand. The 1,300-kilometre Trans-Alaska Pipeline, which carries about 12% of US production, was shut down after a leak was discovered on Saturday.

- So we didn’t get back to $100 oil on the first trading day of the new year like we did back in 2008.

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