When seen in the background of the worsening global, economic fundamentals, a free fall in oil prices cannot be ruled out altogether. There are definite ominous clouds on the crude horizon — one can’t deny. Indeed when the economy slows, so does demand for oil. And this carries price repercussions.
The wobbling state of the global economy, the very prospects of the economy slipping into a recessionary mode once again, are beginning to have ramifications. As the weekend approached in the northern hemisphere, markets were seen hovering around $80 a barrel after touching the lowest level in more than six weeks on Thursday.
Crude for November settlement rose 2 cents to $80.53 a barrel at 1:50 p.m. on the New York Mercantile Exchange. Earlier, it touched $77.55, the lowest price since Aug. 9. Futures are down 8.4 percent this week, headed for the biggest drop since the five days ended Aug. 5. Prices have fallen 12 percent this year.
No comments:
Post a Comment