Oil Prices Rise After A Slowdown in Output Is Shown

By Pete Southern in Gold and Oil News | August 11, 2011 13:51 | Tags: , , , , ,

The price of Crude Oil futures rose by a whopping 4.5% on Wednesday after the reported inventory data showed that output fell by 5.2 million barrels during the previous week. This ended a short two days of losses on oil prices.

September Crude Oil futures ended the day at $82.89 at Nymex, whilst Brent Crude futures also closed up on ICE exchange at $106.68.

The current worries about the US economy and a lessening demand for Crude has troubled the prices of Oil and other energy futures in the last few weeks. Investors have been looking for more opportunities in metals like Gold or Silver which are historically good places to put money in uncertain economic times.

With that in mind Gold hit new record highs of $1801.00 in intraday trading on Wednesday. As said, metal appeals to many shrewd investors as a safe haven. With markets crashing and so much uncertainty surrounding the economy of the USA, there has been huge increase in speculation on bullion with many commentators suggesting $2000.00 is within reach very soon.

Silver also ended up strong on the day with a rise of $1.44 to close trading at $39.99 an ounce for the September futures contract.

We expect further strength in metals if the uncertainty surrounding US debt stays in focus. A worrying time for an economy can usually mean strong times in safe haven metals.

Pete Southern About Pete Southern
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.


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