viernes, octubre 17, 2008
Brent North Sea crude : 66.42 dollars a barrel
Economy has slowed down and demand of energy is nosediving.In case recession and stagflation continues the demand of crude oil to remain low which shall bring the crude oil bottoming out its price to 35 dollars.
Brent crude sliding under 67 dollars a barrel, the lowest level for more than 15 months, as slowing energy demand took its toll,and the analyst says that it is likely to touch below 50 dollars due to prevailing recession in the world economy.Crude has touched bottom to fifty percent from July this years when it made a high of 148 dollars due to disruption and sluggish supply and consistence demand from india and China.
US crude piled up a parameter that
OPEC, in state of oil jerks is worried about oil prices thus is target of recession in coming months and erratic market to flow calls forward an extraordinary meeting on the impact of the current finance crisis on oil rates from 24th October to November.
Russian economy which started picking up shall also find their economy reeling under recession with crude price taking the toll of the lavish rich oil economy with high tech benfic.
Global aviation companies may sigh a relief with oil trading bottoming.
Brent North Sea crude for delivery in November slumped to 66.42 dollars a barrel - the lowest point since mid-2007 - in late London trade.By 1520 GMT, Brent recovered to 66.61 dollars, down 4.19 dollars from Wednesday"s close.
The contract had ended down 3.73 dollars on Wednesday as mounting fears of a global recession raised expectations of a prolonged slowdown to worldwide energy demand.
In Thursday trade, New York"s main futures contract, light sweet crude for November delivery, was down 1.37 dollars at 73.17 dollars a barrel after sinking as low as 71.21 - a level last reached in August, 2007.
'The fears about this global credit crisis leading to an extended economic slump, and perhaps a recession, really are causing investors to bail out of equities and also oil," said Victor Shum from the Purvin and Gertz energy consultancy.