Oil Prices Caught Between Two Trends in Economy

Oil and Gas Investing

Business Week reported that oil prices are getting affected by two competing trends in the global economy: Europe’s debt problems slowing its economy while developing nations boosting oil demand to a record in 2011.

Business Week reported that oil prices are getting affected by two competing trends in the global economy: Europe’s debt problems slowing its economy while developing nations boosting oil demand to a record in 2011.

The market news is quoted as saying:

The growing energy needs of China, India and other developing nations will continue to prop up oil prices despite sluggish economic growth in Europe and the U.S., said Andrew Lebow, a senior vice president and oil broker at MF Global.

Meanwhile, the European Commission said that Greece’s budget shortfall will be more than expected, increasing fears that a default there could spark a slowdown in Europe. Greece’s deficit as a percentage of national income is now expected to hit 9.5 percent, up from an earlier estimate of 7.6 percent.

Click here to access the entire news

The Conversation (0)
MARKETS
COMMODITIES
CURRENCIES
×