Stocks in US edged remarkably low on March 2, 2012. The S&P 500 along with Nasdaq however maintained pace, exhibiting a positive performance for eight out of last nine weeks. Investors kept a close eye on oil prices too, which have been on a rising spree since February. Crude oil in US witnessed a fall by 2%, and reached $107 a barrel after it hit a ten month high of $110 per barrel. This fall came as Saudi Arabia eased concerns over pipeline explosion. This news had pushed Brent to remarkably high levels since 2008. The news about the pipeline fire came from media in Iran.
The recovering economy might get damaged by steep oil and gasoline prices, since consumers will be forced to cut on their spending. The director of equities, Kayne Anderson Rudnick in LA California – Doug Foreman said that in case there is a noteworthy event in the Middle East with Iran, there might become a factor for change over a short span of time.
The US President’s aides and that of the Israeli Prime Minister are seeking a middle way out to the differences. The heart of the concern primarily is that Israel might attack Iran’s nuclear sites. This has resultantly led to a spike in the prices of oil remarkably. Both the leaders are scheduled to meet on March 5.
The fear that renewed tensions in the West with Iran might lead to a disrupted supply of crude oil through the Hormuz Strait, thereby spiking off the oil prices further. Since the beginning of 2012, oil prices have swelled up by about 15 percent.
The increase in crude oil demands especially from China and other such emerging economies are among other stable pressures on oil prices. The US President, Obama has at various points recognized this concern too.
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