News

June 19, 2009

Oil Price Stays Above US$70 A Barrel DespiteThe Poor Fundamentals And Despite the Upheaval In Iran

By Eithne Treanor

The world seems to be in waiting for the economic recovery with oil prices “stubbornly” holding up despite the fundamentals. The talk on the street now is about when and not if the recovery kicks in. No one can give us any indication, but the experts appear sure that it’s coming. With that sentiment in mind, the oil price was trading over US$71 a barrel on Friday.

A return to consumer confidence will hopefully boost oil demand. That’s the scenario everyone wants to see. The leading manufacturing index in the US in Philadelphia contracted less this month than in the previous nine months. It’s still in negative territory, but not as negative as in previous months. The global economy is grateful for any bit of stability right now, once it’s not dropping. The number of jobless in the US also fell and the leading economic indicators are on the increase. Put...