Business

Decrease of oil prices in Asia
by Barbora Misakova

Economy is a bit strange for me. The only thing I am sure about in connection with economy is that economy is always watching what's going on with oil prices. Everything is spinning around oil. Every little change in prices is important and it can have good or bad influence on everything else. In few words economy is just a one big circle. Every little change in weather, policy or exchange rate can influence the change of oil prices. Few hours ago news about oil prices came from Asia & oil prices drop below $124 for a barrel. In the previous session it was $124.31 a barrel, and on Wednesday midday it was $123.98 a barrel what represents the lowest settlement price for a front-month since May 15. In comparison with May 22 when the oil prices were record high - $135.09 a barrel, today oil prices present more than $11 decline.First of all situation in Asia is connected with lower demand for gasoline in the U.S. Last week demand fell by 4.7 percent which is related to Memorial Day holiday weekend. What is more some surveys show that Americans are sick of high oil prices and that's why their "appetite" for fuel is lower than usual. United States as the world's largest consumer of energy and oil products has a big influence on every little move of oil prices around the world. Another impact on global oil prices also coming from the U.S. is connected with American dollar. When dollar's value declines against the Euro, then oil prices are higher. On the other hand when the American dollar is strengthening then oil prices can go lower. Another thing which have quite a big influence on oil prices is weather. Monday's drop-off in prices can partly relate with earthquake in China. About 10.000 killed people, knocked power plants and some factories became off-line & these results cannot reflect in anything else then dropping of demand.

related story: http://news.yahoo.com/s/ap/20080604/ap_on_bi_ge/oil_prices;_ylt=AtGOzkXhALs4sdr180IbYmuyBhIF

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 5:41 AM