Expectations and Current Standings of the Oil Market
Crude oil prices have experienced yet another decrease this week, dropping well below $76, as demand for the fuel fell again. The slow recovery of economic giants such as China and the US has caused investors to seek alternatives on the global market that have been faster in their climb out of the recession-addled low figures. Nevertheless, hopeful predictions about the American stock have limited the outflow of investors.
Iran’s hostile approach towards the ultimatum lodged against its nuclear program, and the subsequent tightening of import/export regulations in the strait flowing through the nation caused oil prices to raise. The US market is also expected to experience a small revival, as money will be put into the industry by the Federal Reserve in a move to boost the lagging economy.
Yet crude drops of more than 3% in China have caused global figures to decrease accordingly. The fall is the first to occur in the emerging nations in the past year and a half. The country’s toughening trade and production policies have been blamed for the drop.
Despite Europe posting slightly higher numbers, a tepid demand for conventional fuel has marred the market standings. Coupled with the US unemployment rates still rising, the predictions for the market in the nearest future seem rather grim.
A decreased demand for petroleum is also expected globally, as individual consumption dropped in the face of the global recession. Analysts have predicted that any rise the world markets might see in the coming weeks will be tainted if the economy fails to climb out of its funk.
The US market may see some bright surges as technical supports blooms, and hurricane season approaches. Slight improvements in the nation’s housing and industrial fields also give room for some hope of a more rapid recovery.
Crude oils continue to fall across the world, with diesel falling $6 per barrel in Singapore, and similar decreases posted in India. Gasoline fell $4 in Singapore, as its main export nations such as Vietnam have seen plummeting economies. Yet the future outlook seems rather hopeful, as with China climbing out of its downturn in the near future, global figures will inevitably rise.