Crude oil hits 7 economic

Shane,
(UK)

When President Obama signed out of 787 billion dollar recovery package, the prices of crude oil in the economic, to weigh, which fell nearly 7 percent on Tuesday.

Nymex light crude in a poultry house for $ 2.57, $ 34.94 a barrel on Tuesday, the London Brent crude was in the range $ a $ 41.04 lower 2.24.

Displays the number of analysts are concerned about deflation, the Ghost is still manufactured demand, continue to be part of the real estate market grows ' sink ' and the unemployment of about 15 million Americans now out, with the work.

DoE figures, are now in crude oil stocks of about 350.8 million barrels, which is the area at the time of this year.

In a huge demand for a high of $ 147 a shock last July for about $ 35 today, crude oil prices in the market to look to see what OPEC STATES take further action.

The oil producers ' cartel, has said on several occasions that it is aimed at the price of about $ 70, and has about 4 million barrels per day in cuts.

Saudi Arabia has expressed its concern about the growth of its economy could suffer if crude may remain current and do not approach them about $ 70 in the primary layer.

Is always the question of compliance with and within Opec, we have to see if all its members carried out the agreed discounts and Oran, in the light of the recent UN conferences in Vienna in October and December, respectively.

Despite the cuts agreed to drop the price of oil still appears and is even speculation that Opec may need to seek further Cut, i.e., 1.5 to 2 million barrels a day.

It was only a few weeks ago, that was amazing, the crude oil contango profits made by buying and storing a physical commodity tankers and anchoring off the coast of these.

Even with the delivery and insurance costs were more than 12 $ een is made on the basis of the profits of one phase and when you consider that these carriers can accommodate up to a million or two barrels, which is the money.

Now, however, these high profits have gone and contango futures and spot prices, there is only about $ 2 to $ 3.

As these stocks shall be exempt from the payment of oil tankers, a tighter supply Opec-fires should see prices in the coming months.

The price is still lower than the raw reflection of the world's economic growth would be helpful to some, this will appear in the "emerging markets", where the Governments energy efficiency programs, the price of crude oil.

Sign up for a free commodity in the Universe-the newsletter, just click here. Is as easy as 1-2-3!

View the original article here