Oil Price Falls
Thursday, September 11, 2008 5:07
When Hurricane Gustav threatened to wreak havoc on oil production around the Gulf of Mexico, the US crude inventories has declined by 5.9 million barrels compared to the situation of last week. The investors have shifted their attention to concern over slowing global demand for crude after Hurricane Gustav left oil installations in the Gulf of Mexico region largely undamaged
As a result of the US supplies decline, the prices of oil dip below the psychologically significant level of $100 for the second day. For the first time in five months, the oil fell to $99.56 a barrel yesterday. It raises the prospect of lower inflation and lowers the interest rates next year.
OPEC decided to further cut the oil supplies. With high prices and slower economic growth driving oil demand in the US lower, a continued fall in crude prices would harm the producers. Analysts said the group are sending a clear message to markets, which had been battered by a recovery in the US dollar and fears of a global recession and slump in demand for oil.
Related posts:
- Steel Companies Braced for Price Falls
Steel companies today are expecting a drop in prices... - Oil Price Tipped to Soar
Oil prices peaked at $147 a barrel in July 2008... - Home repossessions falls deeper in UK
The number of homes repossessed by mortgage lending fell again... - Fear Build up Europe as Global Shares Falls
Global equities are sharply as worries over the impact of... - Oil Price Hike will Batter British Economy
The price of oil jumped by nearly 4% amid...
