11th August, 2011: A volatile week, is about to exit leaving behind a trail of faltering markets and economy. The toiling recovery spiced up the scenario further. The oil prices last week fluctuated in about $6 range, while the economic news poured in. the future of the American currency – dollar and the euro left several experts speculating, while concerns for the US and EU’s economic growth further gathered momentum.
The week begun with crash in the equity markets, resulting in oil prices tumbling down by $7 per barrel in New York and $10 per barrel in London. The mid week saw an average of 6.3 percent loss. Parallel crude oil in New York reached an all time low of $82.87, lowest in the last eight months. Little repair was witnessed by the end when the prices closed at $86.88, offering some respite.
The US Debt further downgrading, might lead to the dollar plunging deeper and oil getting some hike. Regardless of newer austerity measures being implemented in the US and EU, they both seemingly have reached a crux from where there is little scope for financial stimulation and similar quantitative measures.
Amidst the turmoil, Saudi Arabia reported an increase in production of oil; however most of it is being used up domestically for the production of electricity, leaving little for global exports. Tehran on the other hand is struggling amidst issues of low production and the fall in revenues, thereby planning to put up a lower quota pledge before a special OPEC meet.
For more details check out http://www.ventrumenergy.com.
No comments:
Post a Comment