Oil prices improve on Friday, despite volatility through the week

10-Nov-08

Oil prices ended last week at a slightly improved note, despite ups and downs through the week. Light sweet crude for December delivery rose to US$62.9 on the NYMEX, after plunging marginally below US$60. Oil prices rose at the end of the week on prospects for sliding energy demand because of a global economic slowdown, despite interest rate cuts. Concerns of global economic recession has intensified as the International Monetary Fund's warning that advanced economies would shrink by 0.3% in 2009 for the first time since World War II, revising its previous estimates of 0.5% growth. The International Energy Agency predicts oil price to average US$100 from 2008 to 2015- a major adjustment from its forecasts last year after a review of the outlook for production costs and demand. Reports have indicated that US gasoline stocks have spiked 1.1 million barrels last week, as against market expectations of a drop of 600,000 barrels.