This week was a mysterious one for oil prices, which took a very sudden
dive on Monday, and continued on a downward spiral over the next two
days, rebounding a bit on Thursday and Friday after the largest decline
in three months.
Prices were driven by a number of factors, though the reasons behind Monday’s sudden drop remain elusive, while the drop in prices on Tuesday and Wednesday were largely guided by speculation over Eurozone economic instability, bad news from FedEx and announcements coming out of Saudi Arabia that OPEC would continue to maintain high production levels, even as US supplies remained unusually high.
A rebound in oil prices on Thursday and Friday was triggered primarily by the US jobs market. On Thursday, a Federal Reserve policymaker proposed keeping interest rates low until unemployment declines sharply, otherwise the risk of inflation is too high. The rebound also reflected speculation over Spain’s announcement that it would unveil a new economic reform plan next week.
Read more: http://oilprice.com/Energy/Energy-General/Weekly-World-Energy-News-Update-22nd-September-2012.html
Prices were driven by a number of factors, though the reasons behind Monday’s sudden drop remain elusive, while the drop in prices on Tuesday and Wednesday were largely guided by speculation over Eurozone economic instability, bad news from FedEx and announcements coming out of Saudi Arabia that OPEC would continue to maintain high production levels, even as US supplies remained unusually high.
A rebound in oil prices on Thursday and Friday was triggered primarily by the US jobs market. On Thursday, a Federal Reserve policymaker proposed keeping interest rates low until unemployment declines sharply, otherwise the risk of inflation is too high. The rebound also reflected speculation over Spain’s announcement that it would unveil a new economic reform plan next week.
Read more: http://oilprice.com/Energy/Energy-General/Weekly-World-Energy-News-Update-22nd-September-2012.html
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