UPDATED ON:
Friday, October 10, 2008
19:57 Mecca time, 16:57 GMT
Business
Oil prices plummet amid turmoil
Oil prices tumbled to a one-year low amid fears the financial crisis will
reduce demand for fuel [EPA]
Crude oil fell to its lowest price in a year, trading below $80 a barrel in
London, as demand declines amid a worsening economic outlook caused by a global
credit crisis.
The price dropped $5.61 to $77.05 a barrel on London's ICE Futures exchange on
Friday.
While on the New York Mercantile Exchange, crude oil for November delivery fell
as much as $3.08, or 3.6 per cent, to $83.51 a barrel, the lowest since October
2007.
The International Energy Agency (IEA) has warned that the ongoing financial
crisis will erode oil demand and set back investment in new oilfields.
In a monthly report published on Friday, the Paris-based IEA said that falling
demand "in the face of higher prices is now being perpetuated by weakening
economic prospects".
'Panic and fear'
Mark Pervan, a senior commodity strategist with the ANZ Bank in Melbourne,
said: "The whole market has lost confidence in everything.
"Everyone is worried about global growth, and oil is the front line commodity
for that. There's just a lot of panic and fear in the market."
"The whole market has lost confidence in everything"
Mark Pervan, ANZ Bank strategist
The sharp falls came despite news that Opec ministers (the Organisation for the
Petroleum Exporting Countries) will hold an emergency meeting next month on the
impact of the markets crisis - amid speculation that the crude producers'
cartel could cut its supplies to artifically keep oil prices higher.
Gordon Brown, the British prime minister, said that a cut in output would be
"wrong for the world economy".
"I'm concerned when I hear that the Opec countries are meeting, or about to
meet, to discuss cutting production, in other words making the price
potentially higher than it should be.
"It would be wrong for the world economy ... for Opec to cut production and
therefore keep prices high," he said.
Opec decided to cut its production of 520,000 barrels of oil per day at its
last meeting in September, to sustain oil prices above $100 a barrel.
Crude prices have since plunged dramatically sending officials from Opec into
crisis mode.
Falling demand
"The deteriorating outlook for world growth is leading to a violent correction
in commodity prices," Martin Lewis, a Deutsche Bank analyst said.
"Further deterioration in the global GDP [gross domestic product] outlook could
act as a trigger for lower oil prices," he said, adding that prices could fall
to about $60 a barrel.
Experts believe pump prices will fall in coming months as demand for fuel wanes
[EPA]
The price of crude oil has now plunged by almost 50 per cent since striking
record high levels above $147 per barrel on July 11.
Meanwhile, global stock markets suffered another calamitous sell-off on Friday,
as the ongoing financial crisis showed no signs of easing up, dealers said.
"Crude prices continued to tumble as fear over the uncertain outlook for energy
demand continues to be the dominating factor," Nimit Khamar, an analyst for
Sucden Research, said.
"Markets are very much trading on fear, which has overwhelmed [the]
fundamentals of supply and demand," he said.
Experts believe that petrol pump prices will fall in coming months as demand
for fuel wanes in the face of recession fears and cutbacks on spending.
Source: Agencies
---------------
Jusfiq Hadjar gelar Sutan Maradjo Lelo
Allah yang disembah orang Islam tipikal dan yang digambarkan oleh al-Mushaf itu
dungu, buas, kejam, keji, ganas, zalim lagi biadab hanyalah Allah fiktif.
[Non-text portions of this message have been removed]
------------------------------------
Post message: [EMAIL PROTECTED]
Subscribe : [EMAIL PROTECTED]
Unsubscribe : [EMAIL PROTECTED]
List owner : [EMAIL PROTECTED]
Homepage : http://proletar.8m.com/Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/proletar/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/proletar/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:[EMAIL PROTECTED]
mailto:[EMAIL PROTECTED]
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
