Saturday 7 May 2011

Why Wont Oil Wont Climb To Pre-May 5 Levels Any Time Soon? | Arabianomics

Friday’s report that the US economy added 244,000 jobs in April is very encouraging. Bad economic data for the United States was part of the reason for the great sell-off that happened Thursday, according to reports in the Wall Street Journal, Financial Times, and Bloomberg that emerged last night.

If the report on US jobs had been bad on Friday, it could have sent markets and traders “toward the lifeboats,” wrote Robin Harding in the Financial Times. But “instead, it was a solid jobs report.”

So, logically, the question is: following an encouraging report that signals the recovery in the US is not as bad as previously thought, will commodity prices, oil especially, rise back to pre-May 5 numbers?

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