It is a known fact that USA is one of the largest consumers of Crude Oil and the concrete evidence can be taken that once the news of the recovery in the US economy was circulated, the price of the crude oil opted to tick at the highest of the week. The consumption in the country increased by almost 15 percent, almost beyond the expectations of the economists, and is driving the oil prices up.

There was a situation when the investors suspected the physical delivery even if the trade was done but now when the economy is reviving, the stocks have also increased and investors are encouraged enough to invest and earn from crude oil. Both the delivery and speculations are hiked up in the international market showing whole lot of positive signs to the investors. There are increased prices in the reports from both USA and Europe coming against the flexible tight delivery of the commodity.

Housing in the US has climbed to the rate of 872,000 which is the highest since July 2008 and this is one of the major reasons driving the oil prices bullish. The index and the leading indicators in the biggest exchanges reflect a positive forecast and exhibit very good signs of the improvement in the economy.

Current trend will increase the price of crude for the week but the inventory report today must show the exact scenario while up to now the forecast remains that though the price is rising, it won’t probably breach the resistance level and then there are probable chances of small fall in the prices initially in next trading session. Earlier, gold was also bearish and demotivating but since news from China and Europe are positive, therefore, as gold generally is the first preference of the investors, so investors in the gold and crude oil seems to be divided. Iraq is also supposed to develop itself as one of the major suppliers of the crude oil in the global economy. Moreover, the current tension between Syria and Turkey will also create some suspense of small rising trend in the crude oil prices.

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