The United States government statement that U.S. employers had slashed over a half million jobs in January, the highest yet in 35 years, lead to crude oil prices dropping just below $41 a barrel, way below the high of $147 a barrel last summer. There is a link between layoffs and the demand on oil, say analysts, as those laid off see no need for the daily commute, and buy less of petroleum products like toys and raincoats.
Brazil plans to invest some $400 bn in coming 10 years to develop new offshore fields that may contain as much as 80 billion barrels of oil. For full story, click here
It is obvious that a barrel price below $60 on the NYMEX is bad news for oil companies. Part of the drop reflects a strengthening American dollar, but recent demand forecast revisions are bleak. Governments, companies and investors think a prolonged recession or period of low growth is in the offing, and everyone should take note.
Oil prices soared above $70 a barrel, mirroring global stock markets that strengthened from Asia to Europe. A weaker dollar also helped. Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, said: Any time oil rises more than $4 a barrel, it’s usually myriad items at play. When the Dow is up, the world is [...]
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