News

November 28, 2008

Pessimism Rules On The Oil Markets As Recession Takes Hold Around The World

By Eithne Treanor

All eyes were on the state of the global economy as oil ministers headed to Egypt for a consultative meeting this weekend. Analysts and traders appear resigned to the fact that any decision taken can have little impact. The mood is one of pessimism on the oil market as the recession takes hold around the world. The oil price stayed above US$50 all week and with America closed for the Thanksgiving holiday weekend, the trading price in electronic trade was just above US$53 on Friday.

• Crude oil inventories remain well stocked for the ninth week in a row and in the current economic climate consumers have been pulling back, putting demand at a worrying low. Oil producers do not have the power to reverse this situation nor have they any real ability to tighten market fundamentals. American Government data showed the biggest slump in consumer spending for seven years. The OECD said this was the worst economic downturn in decades.
  
  
• The US Government...

  <- Back to: Oilbarrel

  Print this news