Everything is going from bad to worse for crude oil due to the worldwide economic crisis. Today, the crude oil futures have dropped a lot in Asia as the traders wanted to make a profit instead of letting others win. The traders wanted to remain cautious, and not take any risks during this economic downturn which has caused a lot of people to lose their jobs.
“We continue to worry about demand in oil markets. The assumption is that consumption will rebound if the economy turns. Nonetheless, the four-week aggregate averages seem to be getting worse each week,” said Peter Beutel President at Cameron Hanover.
Light sweet oil which will be delivered in June has traded today for $57.98 a barrel at the New York Mercantile Exchange market. This is 65 cents less than the price from the Globex electronic session. The Nymex heating oil has traded for 150.50 cents a gallon, while the reformulated gasoline for June has traded for 168.25 a gallon.
“Macroeconomic expectations certainly do seem to have stabilized and then begun a process of some improvement,” said Barclays Capital analysts.
I guess it remains to see how this turns out. Let’s hope that this week will be a good week for business.
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