Crude oil and natural gas prices continue to drop
Crude oil and natural gas stocks continued to fall this week, marking an alarmingly long losing stretch for the conventional fuel markets. Crude stocks plunged for a fifth straight month in the New York Exchange, and similar woes plagued natural gas prices that fell 2.4%.
The most recent numbers have shown oil prices fluctuating, and yet settling without much change, while natural gas experienced further decline, despite numerous weather predictions for a colder than expected summer.
Ever- growing stored amounts of the fuel, coupled with the nation’s painfully slow climb out the persistent recession are two of the most mentioned reasons for the fuels’ steady drop in the financial ranks. Experts have been talking about the potential the ailing market has to experience a viable market crash, as the grim pattern of low lows and low highs suggest a phenomenon, known in the industry as the Hindenburg Omen. The omen is meant to recognize a faltering market right before it crashes, and though it is unlikely that this is going to happen here, the disappointing results that have hung around oil and gas stocks do little to quell investor anxiety.
The news arrives in worse company, as Iran gears up to begin powering its nuclear plant next week, a threat that the US has failed to quell in its starting stages. Now that a possible Israeli attack may loom over the nuclear plant, events surrounding the area can take a drastic turn very rapidly. Iran’s defence ministry has already issued a threat that if Israel decides to bomb the plant while it is still in its budding stages, the nation will respond in kind.
Political and economical concerns over the region continue to grow, as Russia installs batteries of anti-aircraft missiles close its neighbour Georgia’s pathway into Iran.
US experts stated that given the potential for full- scale escalation in the Middle East at this moment, fuel economies for all parties involved may be affected greatly, as the nation puts a stop to its exposure to Iran’s oil supplies and oil transportation routes.
The New York Mercantile Exchange reported further drops in crude oil standings yesterday, as the fuel fell 15 cents, with a similar decrease expected to occur in the coming months. Heating oil did not fare much better falling to 0.68 cents and its plunging numbers were accompanied by the 1.53 cent drop in oxygenate blending standings. Natural gas also fell 10 cents on NYMEX, and similar decreases were reported from other markets.
The overall price for crude oil from the Organization of Petroleum Exporting dropped a staggering 37 cents, with predictions of further declines already made.