Crude Oil Down but Futures Up
Last week saw crude oil fall from a high of 93.80 on Tuesday to close the week at 92.30. The price fell as investors worried that that global supply vastly exceeded global demand. The supply is plentiful enough to offset concerns over conflicts in the Middle East and Ukraine.
Furthermore, a strong US dollar makes oil less appealing in dollar denominated exchanges. As a result at one point West Texas Intermediate crude oil for October delivery was down 0.81% a barrel. However, by the end of the week the October contract did increase by 1.27%.
The increase in crude oil futures was the result of a new round of sanctions against Russia. This has added to concerns surrounding supply as the government in Moscow has threatened retaliation. If the Kremlin announces that it will be restricting oil flow out of the country then oil futures are likely to rise further.