2. Second school of thought is of the opinion that global demand for oil which is likely to be seen in this year is 83 million barrels a day and same will result in lower demand of 2.6 million barrels. Mind it; this reduction in crude is happening for the first time in past 30 years. Thus the recently released report by International Energy Agency appears to be true which states that inventory level in the major oil consuming countries is the highest in 2 decades. One has to be also alert to this news that worst of the US recession is not over as weak news on retail sales, unemployment and housing will lead to low levels of crude.
3. However crude enthusiasts should keep following 4 levels in mind i.e. $55 per barrel, $60 per barrel, $65 per barrel and 68 per barrel. Thus if crude breaks past $60 per barrel than one can see commodity rallying to $65 per barrel and faces stiff resistance at $68 per barrel.
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