OPEC weekly Crude Oil price hits fresh record high Impacted by the decline in USD exchange rate, the weekly average prices of the Organization of Petroleum Exporting Countries (OPEC) last week re-bounded again, hitting a new record high of 84.90 bbl over the past 2 yrs, the Vienna-based cartel said Monday. It represented the highest level of OPEC weekly average oil price since the 1st week of October 2008. On Friday, OPEC Crude Oil price reached 87.13 bbl, also reaching a new high of OPEC daily Crude Oil price since October 2, 2008. During the last 5 trading days, OPEC oil prices showed a consecutive rise from 83.45 bbl on Monday to 87.13 Friday. As the recent debt crisis of EuroZone eased and the concerns on a second round of economic dip relatively reduced, the investors once again shifted their interests to the world economic recovery, especially the economic recovery in industrialized countries. A growth of Crude Oil demand is expected along with an expected economic growth, and the international crude oil prices would be driven by the optimistic economic outlook and an access of speculative capital as well. In addition, the arrival of winter increases the demand on heating oil in many regions with cold weather such as Europe and the United States, which also supported the international oil prices to a certain extent. Although the US employment figures in November released by the Labor Department did not show a positive result, it did not affect the expectations of economic recovery, but increase the market speculation on a further action of the US Federal Reserve. The USD weakened and that leads to an increase in prices of commodities including Crude Oil. Some analysts believe that the main reason for the high Crude Oil prices currently is not the changes of relationship of supply and demand in the international oil market. The uncertainties of the Crude Oil market are increasing.—Paul A. Ebeling, Jnr. www.livetradingnews.com

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