Skyrocketing crude prices, which touched an all time record of nearly $106 last week, could begin to recede as early as next week on the back of a lagging US economy, a survey has revealed.
Almost half of the professional analysts surveyed by newswire Bloomberg believe a slowdown in demand from the embattled US economy, the largest consumer of oil in the world, could precipitate a weakening of the price.
Seventeen of the 38 analysts polled believed the crude price would start to come down, while seven retained a neutral outlook and 14 thought the price would rise.
“The crude-oil market may continue to draw buying in the near term based on financial factors such as the weakness in the US dollar,” the newswire quoted Tim Evans, an energy analyst at Citigroup Global Markets as saying.
“But at some stage we think the weakness in the physical market, where gasoline inventories are at the highest level since the 1990s, may gain wider notice.”
The US Energy Department indicated a 3.4% reduction in demand for oil for the past month year-on-year, while gasoline stockpiles rose to their highest levels since 1994, Bloomberg said.
Oil has been part of a major global commodity boom as investors looking for a safe haven against the tumbling dollar pour into tangible assets.
Gold also hit a record high last week, threatening to break through the psychological $1,000 barrier for the first time ever.
Wheat, corn and precious and industrial metals have also rallied along with the energy complex in recent months as the global economy, fuelled largely by the expansion of emerging markets, kicks into overdrive.
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