Oil rebounded in Asian trade today after five straight days of losses. However trading was slowed down due to concerns over the strength of the global economic recovery and its impact on energy demand.
It would be worth mentioning that Oil Trade had taken a global dip due to the sharp slowdown in second quarter growth in Japan, the world’s third biggest energy-consuming nation. This in turn had affected markets already tumbled by weak economic data from the United States.
Analyst’s claims that oil prices began tumbling today after the US Federal Reserve claimed US economic recovery in the near term was likely to be more modest than anticipated.
However some maintain that gross domestic product (GDP) figures from Japan released on Monday showing lower-than-expected growth still had “some influence on the market.”
Oil is likely to remain in volatile trade between $70 and $80 a barrel in the short to medium-term. However experts claim that prices could surge above $100 in two years.