The last few days have saw aboriginal fluctuations in oil prices that have left experts and onlookers speculating. Crude oil prices have been falling sharply since last few days and this fall is reportedly largest in the last two years’ span. The emerging and constant strengthening of US Currency is the prime factor behind this sharp plunge of commodities’ prices.
The Spot Oil prices declined by about 8.64 %, notably the sharpest fall; since 2nd April, 2011. The Brent spot Prices also noted a fall by 8.33 % reaching at 110.58$/b.
Natural Oil prices also witnessed a similar downward movement declining by 1.74%.
Looking at the scenario in the Middle East, the turmoil continues with Gadafi’s forces continuing to strike the rebels. Resultantly, Libya - one of the largest oil producers in Africa has now become a significantly low producing country. However to establish a link between the Middle East clamor and the fluctuating oil prices is just one of the few reasons. The summer season entering the continents of USA and Europe are also responsible for pulling down the oil prices.
Thus the bump in US currency in contrast to that of the Euro, along with other factors that underplayed can be the reasons for this drastic fall in commodities’ prices, crude oil topping the charts. This instability has raised multiple concerns with chief one being amongst investors and companies banking heavily on Crude oil trade deficit and the corresponding price rise.
Going back a few more days, the world woke up with changed attitude on Monday morning May the 1st; with the news of Osama Bin Laden dying on Sunday night spreading like wild fire. The oil traders now had a bearish approach. With the terrorist threat and associated security risk falling steeply, the oil markets continue to face apprehensions.
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