Amidst fall in the value of greenback, Crude Oil futures at international market have gained up to 1.5 percent. With instant rise in prices of crude, trader are watchful over the price movement of the commodity. After fall in the value of dollar on Monday from its recent highs, the dollar-inversely correlated commodity, i.e., Crude oil gained upon the received support from the green back.

As U.S economy these days is exhibiting improved economic indicators in terms of improved industrial data and consumerism, the economy is believed to significantly surge the usage of energy, eventually aiding the demand and prices of crude oil. With improved housing data, optimistic unemployment situation, the credit flow in U.S economy has started to take pace and the same liquidity combined with improving automobile industry is expected play a significant role for increased crude consumption in U.S.

U.S at one side is looking positive in terms of economic indicators, China, an Asian giant, on the other hand is exhibiting tremendous economic growth. Increased industrialization, continually surging automobile usage, boosting level of internal consumption and export have been jointly gearing up significant volume of crude consumption in Chinese economy. With increased economic activities, energy consumption in Chinese economy, as per analysts, is expected to raise prices in coming days.

Amid increasing energy consumption and outflow of USD from American economy, Obama administration has been keenly working to marginally increase energy extraction and processing in the ‘land of opportunities,’ i.e., U.S, itself. With improved American and Chinese economies, where the short term prices of energy, especially crude, is expected to go bullish, long run perspective shows a different story. As per American energy policies on energy production, the country shall be generating energy sufficient enough to fulfill its internal consumption by the year 2020, with decrease in international energy demand and focus on other sources of energy (bio-fuel, solar energy, chargeable consoles), particularly ‘go-green theme,’ the price of energy commodity, particularly crude in long run, i.e., time span of 5 years and above, can be expected again to see bears.

Note: This blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.