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Q.

Crude oil price at $ 90 a barrel is at 26 months high. What is the reason for this though Europe is still not free from its of debt crisis? Your views?

Tags: money, europe, crude oil
Asked by Good Citizen, 09 Dec '10 11:15 am
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Answers (4)

 
1.

Crude oil price rose to $90 boosted by a weaker dollar, higher equities, and momentum buying as traders could guess the market might go beyond this level .Though Europe is still not free from its debt crisis yet considering all future demand and supply position (of OPEC and Non-Opec countries) the future price in 2011 may go beyond $100 . Hence it is an earlier traction .
Source: news .
Answered by sk singh, 09 Dec '10 11:49 am

 
  
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2.

The heavy cold in Europe had resulted in the increased demand of Crude oil as it is used for heating of their homes and water line that is the main reason and is temporary only-Sonn it will stabilise-Also the second reason is the falling value of Dollar-US also contributing to soem ectent to offset the inflatory effects
Answered by SriniVenkat, 09 Dec '10 11:18 am

 
  
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3.

Oil prices edged up a to 26-month high near USD 90 a barrel amidst choppy trade as a result of the cold weather in Europe and in the U S A expectations that strengthening economic recovery will boost demand. Hedge funds and other large investors increased bullish bets on oil last week as prices rose. The funds boosted so- called net-long positions, or wagers that prices will climb, by 18 percent in the seven days ended Nov. 30, according to the Commodity Futures Trading Commissions weekly Commitments of Traders report. It was the largest gain since the week ended Oct. 5.
Answered by venkatesaldevarajan, 09 Dec '10 04:30 pm

 
  
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4.

Medium to Long term trend for Crude Oil is looking extremely positive. Currency devaluation of Euro, US Dollar could also be a part of this rise. Commodities as a whole are probably in the midst of a great rally, barring some technical correction individually.
It would be futile to believe, crude is going to get cheaper ( even though it will affect us all). Instead take steps to hedge against the inflation brought about by the cheaper dollar( courtesy, Federal Reserve of USA).
Answered by Ramesh Chordia, 09 Dec '10 11:20 am

 
  
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