The price of oil down 18% in May

Published: 24 May, 2010 18:25

Although summer usually tends to give lower oil and commodity prices, the month of May 2010 has been moving more than usual. Light crude oil have fallen 18% in May, and the question among oil traders now is if it will continue to sink or about to rebound?

Where are oil prices heading?

The commodity market this week begins fragmented and there is uncertainty as to which direction light crude oil will take the coming weeks.

Some oil analysts have a gloomy market outlook, believing increased pressure on demand for oil in the second half of 2010 will give even lower price for oil. Public debt is still a huge problem in Europe and Adam Sieminski, energy analyst at Deutsche Bank, believes that there is now talk of a W-shaped recovery.

More positive oil analysts believe that a temporary correction have taken place and now expect a recovery. They point out China’s demand for oil as an example, which have increased 12% this year.

Where do you think the price of oil are heading?

Related news topics

Leave a Reply