Business

Oil prices up or down?
by Claudia Sonea

Oil prices are bound to soar in the future, at least that is what most of the analysts are telling. One of them is Goldman Sachs who has lost across time some of his credibility, but now he is supported by the fact that on Tuesday oil prices reached $122.73 a barrel and closed at $121.84 on the New York Mercantile Exchange and even by the Energy Department’s forecast. Investors turned to oil as the stock market is sliding and its production declined in Mexico and Russia. Although the oil prices doubled from a year ago, most analysts don’t share Goldman’s view of a spike in prices and believe that can easily decline as the demand increases. Yet, investors are driven by such forecasts and the demand is high, especially for countries like China, India, Russia, and Brazil, thus clashing with the forecast of the Energy Department's Energy Information Administration. The EIA predicted U.S. demand for petroleum products will fall due to high prices. Let us see why oil is in such great demand. The dollar fell again on Tuesday, raising concerns of inflation and investors overseas having the chance to buy cheaper oil. Moreover Russia and Mexico, the major oil producers, announced a decrease in production, while Nigeria and Iraq deals with supply disruption due to terrorist attacks. As it is, the EIA reported record highs for gas in June and the AAA and the Oil Price Information Service is bringing good news that a gallon of regular gas reduced its price to $3.61. Analysts think that this is probably the peak and that soon after the price will be stabilized and the demand will decrease. However, the economy which faces recession might bring more surprises along the way with a weak dollar. More to come.

related story: http://news.yahoo.com/s/ap/20080506/ap_on_bi_ge/oil_prices;_ylt=AidVo4y_vjUc2.Ohl8KlHRCs0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are brought to you by CantellTV, its technology partner SigEx Telecom and its founder Chris Cantell. CantellTV is the fastest growing provider of digital broadcasting coupled with enhanced communications, allowing people to easily control, view, upload and share digital content through proprietary interface. CantellTV has relationships with a growing network of international clients delivering millions of videos per day with more than 50,000 new videos uploaded and 200 hours of new TV shows broadcasted daily to a wide range of viewers, from 5 to 7 year olds of LiveCartoons; to 16 to 24 year old active social users of MyJumps; to fortune 50 corporate clients utilizing enhanced broadcasting services. CantellTV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers. Chris Cantell retains consulting arrangements with several pre-IPO companies.</font><br>

Edited by: Katarina Zerzanova

Labels: Business, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

posted by Blog TechSource @ 1:03 AM