Oil dropped in price during Friday’s trading session, having marked a great month rally after trading below $80 a barrel in late June and peaking at $93 levels.
Short inventory counts in the US, combined with tensions from the Middle East and stimulus expectations, have overweighed fears of a global recession in the near future.

After trading above $93 a barrel on Thursday, it will be interesting to see how much oil can gain before a profit sell off will occur.
Week employment from the US depreciated oil in the short term during Thursday’s trading, before it received another momentum period and closed well above $92.

Oil is continuing its upwards trend, breaking a psychological $90 barrel price. A weakening US dollar has appreciated oil amid strong earnings results announced by EU and US companies so far.
It seems that second quarter results from most of the companies from the EU are showing earnings well above what economists had previously estimated, and therefore risk aversion has drifted away from the safe haven dollar.

Oil is trading very close to levels witnessed last in late May when a barrel was priced more than 90$.
Expectations for quantitative easing in the US along with pressure from inventory results and Middle East tensions have kept oil trading at these price levels.

Global concerns following growth results from China have been confronted with stimulus expectations from Bernanke’s semi-annual speech today as Federal Reserve Chairman. Low retail sales, dropping 0.5% according to yesterday’s report in the U.S. have fueled a possible monetary ease and the price of oil is close to its highest since late May, trading at 88$ a barrel.