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Oil is one of the foremost fossil fuels without which it’s a bit difficult to think of the life. It is a vital lifeline where one thing gets associated with another. Being an important performer for overall transport requirements, it has influenced every sector on the earth, especially industrial sectors. With rising prices and changing economy, it is difficult to hope for fixed prices on oil. The prices on oil climbed somewhat higher above $99 a barrel on 9th of February 2012 in Asia as the United States crude demand delays the complete upgrading in the world’s biggest economy. In electronic trading on the New York Mercantile Exchange at the late afternoon, Benchmark crude for March delivery climbed up 39 cents at $99.10 a barrel. However, the contract mounted 30 cents to settle at $98.71 on 8th of February 2012. On the ICE Futures Exchange in London, Brent crude soared 35 cents to $117.55 a barrel. As a result of hovering crude prices close to $100 for the last few months, the situations are better than expected results. Therefore, such circumstances are strong indicators that depict the improvement in the United States economy. Despite the US crude demand is slowly picking up the speed. On 8th of February 2012, the Energy Information Administration explained that the US petroleum demand dropped by 4.8 percent to a four-week average of 18.1 million barrels per day. This is the weakest four-week average since April 1997. However, the EIA suggested that the United States crude supplies rose by 300,000 barrels on the last week of January. The report of Barclays Capital depicted: “There is striking discrepancy between indicators of the US oil demand and indicators of the US economic backdrop." The company added: "Our economists anticipate that the growth in overall activity to gently accelerate through the remainder of 2012, which stands in stark contrast to recent oil demand readings from the US." It added that improvement in the demand for crude especially in developing Asian countries, China and India will boost prices on oil. Barclays said: "The problem with judging the global pace of oil demand growth is that the epicenter of that growth has most definitely moved away from the US to Asia and China in particular." From the reports of other energy trading, it has been witnessed that crude oil climbed up $0.4 cent at $3.19 per gallon. Gasoline futures summed up 1.2 cents to $2.99 per gallon. Natural gas dropped 0.5 cent to $2.44 per 1,000 cubic feet. The columnist is an accomplished columnist in oil related fields, who frequently writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
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