Tuesday September 06, 2011: The fear of an economic crisis potentially heading towards the EU and the US looms large thereby leaving little option for the oil market but to fall. Benchmark West Texas Intermediate Crude was 43 cents lower and was at 86.02 per barrel in the New York exchange. Though US benchmark regained after tumbling to an all time low of $83.20 per barrel, this was in effect to a parallel boost in Brent Crude.
London witnessed a 2.6% increase in Brent crude and was at $112.89. The steady drumbeat of economies slumping further and heading towards a prolonged recession, spooked investors across the world; forcing analysts to predict a nerve wracking year ahead. The coming months would provide enough for daily bearings, leaving little room for investments.
Investors however are also eyeing upon the upcoming and most awaited speech by the US President, Barrack Obama, about how he plans create a stimulating effect on a slow moving economy and to create better jobs. The present employment rate hovering at about 9.1%; the Fed or the White House is expected to do something that has a major impact, in order to turn the situation around.
The year though began with a positive note, with analysts predicting record oil demands, but the current tide is against such predictions. A cut down on the purchase of consumer goods like clothes, books, toys, electronics, especially from China, leaves very little scope for the Chinese to increase oil demands, due to a remarkable lack in investing power.
The remaining half of the present year is expected to witness a short demand of oil across the globe as analyzed by Jim Ritterbusch.
Retail gasoline also laid flat at $3.66 per gallon. Heating oil on the other side was added by 1.28 cents making it grow to $3.0102 per gallon.
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