Oil prices have fallen amid fears of car industry
After continued fear of the threat of the global economic downturn spreading to Asia, as well as the car industry across the world, has pushed oil prices below $50.
Energy analysts have not found a reason to suggest that oil prices will rebound like they did at the end of last month, from $40 per barrel to above $50.
At present, crude oil inventories are continuing to grow, even though the Organisation of Petroleum Exporting Countries (OPEC) have made cutbacks in production and many domestic producers have pulled the plug on oil projects.
As a result of the economic slowdown, there are also suggestions that the OPEC nations are under greater economic threat due to the fall in the value of oil and are, in turn, having to reduce production in order to cut costs.
Both the Asian and European markets have fallen sharply after the rescue package for General Motors and Chrysler had fallen through which in turn undermined the optimism over a quick recovery for the motor industry.
This followed the announcement made by the US government that crude oil storage facilities were at a 16-year high and that there was enough oil in storage to fuel the equivalent of 44 million cars for a year.
Visited 2033 times, 1 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.