Currently, the commodity market is facing lots of turbulence, especially caused by the price cash of Gold. No such significant good news actually came up during this period but recently, the traders have, at least, one product to cheer up, Crude prices look like moving up gradually. West Texas Intermediate Crude, commonly termed as WTI Crude has moved up to the highest of the weekly prices which triggered due to the reports suggesting that the crude inventory has come down significantly. United States of America (USA) is the largest oil consumer in the world and its inventories coming down made speculators believe that the prices will surely go up, thus many long positions.

In New York, the increment in the prices of futures is as much as 0.5 percent and this has taken the prices to the weekly highest one since April 15. According to the data made public by American Petroleum Institute, the supplies of the crude in USA fell by 845,000 barrels in the last week. Because of the tensions in the Middle East, the crude supplies may face additional problems. Iraq, in an addition to it, has threatened the OPEC that if the group will not let the nation’s output rise, Iraq may opt to exit the OPEC. This is likely to create further chaos in the crude market.

Goldman Sachs Group Inc. is one of the influential traders in the commodity market. According to Bloomberg, the group has “cut its three-month outlook for Brent to $100 a barrel from $110 and lowered its forecast to $105 from $110”. After USA, China is the second largest consumer of Crude in the world and in China too, the demand for oil is gradually expected to slow down but for now, the demand pressure has been hitting the crude market overall. Though, the issue has been seen with decreasing demand and decreasing consumption in the crude market, the market is still driving the prices up, this clearly signifies that the demand pressure is greater than the supply pressure.

To conclude with, the three major incidents- stockpiles decrease in USA, the demand and consumption decreasing in China and tension with the Iraq in the Middle East. The resultant force has been the demand force, how it comes is that people are interested more with the USA and Iraqi threat than the Chinese lowering demand. The prices are rising now and hopefully, they remain good for traders.