News

February 05, 2010

Analysts Look For Positive News for Oil Prices But the Markets Decline to Buck Up

By Eithne Treanor

The oil market continues to look for signs of positive growth in the global economy, but week after week, the news fails to thrill. The oil market got a boost earlier in the week with prices close to US$77 but the gains were short-lived. With jobless claims in the US still rising and the dollar gaining strength, the oil price took a beating later this week and in early trading on Friday, WTI was priced above US$73.

While Americans are unemployed, they will not spend money, so the demand for energy continues to stagnate. The market had hoped for better news this week, but jobless figures are on the rise again. The equity markets were less bullish by the end of the week and a stronger dollar is luring investors away from the commodities market in the short term. The dollar was at its highest level against the Euro since May last year.

Analysts are nervously watching the economic recovery in Europe, as...