Crude Oil Price Falling
After Toyota annoucing its first ever operation loss in 70 years, crude oil price contine to fall on fear of weaker demand. Oil prices extended their sharp fall to drop further below $40 a barrel on Tuesday.
Do you think it is the time that the oil price should stop falling and rebound or do you think it will continue to fall?
Let’s check out what other is saying.
Where is Crude Oil Price Latest Movement Trend?
According to MyIris, Oil prices fall below USD 40 a barrel on Monday as companies like Toyota and Caterpillar hinted that global crisis will worsen further and there will be huge fall in energy demand.
Oil for February delivery fell USD 2.45 to end at USD 39.91 a barrel on the New York Mercantile Exchange.
Brad Aloha think that there is no reason for the oil price to rally due to deepening loss of US economy and dramatic decline of Japanese export will continue to drag the oil price lower.
Indian stock daily reported the crude import to China (World 2nd largest consumption of oil) has fallen to the lowest level this year. This will signal weak demand of the oil despite the announcement from OPEC to cut the oil production.
Economic News reported that South Korea, Asia’s third-biggest crude-oil buyer, will increase the tariffs on fuel import. This is also another signal of the weakening oil demand in the asia.
BizChuck also mentioned from Reuter report that the final third-quarter U.S. gross domestic product data due later in the day is likely to underscore the ailing state of the world economy.
In the midst of all the bad operating conditions from the US and Japanese automakers, lower demand at China and Asia, plus the looking worsing of US economic conditions, this will all add up to the short term falling of the oil price. Currency King thinks that all the stimulation package will only have effect on the oil price maybe in February or March 2009.
Hearing all the news, I also tends to agree with all the above there is no sights of the oil price to rebound, based on the news and fundamental analysis, without looking at the chart. As I mentioned in my previous post that there is a possibility of index dressing at the end of the year, likely the oil price will stay flat in this last few days of 2008. Will it fall or rise in January? I think we will definitely need to look at the chart in the first 10 trading of January movement.
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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As oil prices keep going down, it surprise to see that some countries in Africa are not lowering the prices at the pump.
Clement, you are right… I am not seeing the pump price going down either. Regardless of the crude oil price, the oil company still makes tons of money.