News

July 30, 2010

Oil Price Hovers Below US$ 80 a Barrel On The Back Of Weak Demand In The US

By Eithne Treanor

The energy industry delivered encouraging second quarter results this week as investors looked cautiously to American GDP figures. The dollar remained weak and stock markets in Asia were down at the end of the week. On Thursday the oil price hit close to US$79 at one stage but in early trading on Friday, oil was priced just above US$78 a barrel.

The oil price has seen a strong correlation with the stock market in recent months but the Dow Jones industrial average declined this week on the back of disappointing corporate results and was down by 0.3 per cent on Thursday after poor employment figures from Japan. The chances of a swift recovery in this Eastern economy are slim with the combination of a high jobless rate, lower industrial production and falling consumer prices. Europe is seeing better corporate results and a report this...