Crude oil for January delivery rose to US$73.43 in electronic trading on the New York Mercantile Exchange. Crude oil prices have risen to levels of US$73 amid optimism of demand increase as the global economy recovers. Prices are expected to continue north on expectations of reduced inventories on increasing fuel demand in the US. Reports expected this week are forecast to show increasing sales of existing and new homes in the country. However, prices are not expected to rise dramatically, because of an oversupply problem.
Prices have also been impacted as the Iranian troops occupied an oil field in a disputed border region with Iraq. An OPEC meeting in Luanda, Angola is not expected to change/review production quotas.