Light Crude goes up by 1.90$ !

The common economics states that as the inventory falls, more pressure is exerted on the supply as the demand for that product is constant and ever increasing. What am I talking about? I am talking about the price of Oil and the price tango that it seems to go into each and every time the Energy department announces to the world that the Inventories have either fallen or risen.
The rise in inventory would make the oil prices to swing the other way about and this time around, the inventory stocks in the United states has fallen by at least 700,000 barrels last week, according to the energy dept. Naturally this has started exerting more pressure on the crude supplies and the factors that can effect the supply of Oil to the United states. Naturally as this news broke out, the immediate effect today is the rise in the price for Light Crude for January delivery which has risen by 1.90$ to 91.92$ a barrel on the NY Mercantile Exchange.

The Oil market is tight as it is with the OPEC not really into making more deliverables than the current content. And at times like this if there is any news of a skirmish in the middle east or another Palestine - Israel conflict, that will have a very resounding impact on the Oil prices or if Bush were to get more hawkish on Iran or the entire Middle east, that will most definitely make the Oil reach for fresh pastures beyond the 105$ range.

What one should remember is that inventories rise and inventories fall, but it is when the inventories fall that one should take into account the other factors like the geo political factors. It is at times like this that the price of the Light Crude as well as the entire Oil market is most vulnerable and with the way that the U.S economy is under right now, we most certainly do not need a 'bullish' Oil market as that would only extend undue influence on the already falling Dollar and may even push it into the Nether world!

oil,Iran,United states,middle east,Dollar,

Canada crude fire and a weak Dollar push the crude prices up!

Everything seems to be pushing the Crude prices up, up and up. Now we get to hear about the Canadian fire that seems to have hit some of the Crude supply to the North American side of the continent and that coupled with the weak Dollar seems to be egging the Crude prices way up.
The recently held OPEC conference did not do much for any of us in the sense that all that was decided was to increase the supply but the catch is that the supply is not being increased right away and not by that much. So the OPEC is not going to do much with regard to the Crude prices as well; that certainly leaves the rest of the world to grapple with the rising Crude prices on its own.
Oil futures seems to be a welcome destination these days for many a foreign investor and they all seem to be buying the futures like there is no tomorrow, since a weak Dollar means great profits to be made in the oil futures as they will give you fantastic returns at a future date. This seems to be the case as the Fed is once again mulling rate cuts. From now on, we can expect the Crude prices and by that I mean the gas prices to head in only one direction and that is up!

gasoline,dollar,united states,fuel,money,

Oil surges ahead and stocks get battered!

Today saw the Wall street take a battering on account of the surge in Oil and the weak economic data. i had already posted on the Oil reaching 90$ and more. It was only to be expected especially with the Middle east conditions being what they are. What has made matters even worse is the fact that the OPEC is not increasing the supply at the moment and they are scheduled to have a series meetings on this account. If the OPEC cannot control the sudden surges in Oil prices, then may be some one else could do it for them. The statements from the president of the United states, George bush on Iran and the World war 3 certainly did nothing to ease the markets. All they did was to increase the 'bear' pressure on the markets. All in all, with the Oil surges and the weak economic data coupled with Georgie's statements on war, all of them together made the Wall street take a battering!

wall street,oil,share market,opec,

Oil price hikes?

With the oil prices soaring new heights is it any wonder that the crunch is being felt in all the world markets?India is no exception to this and today many of the oil companies were clamoring to the PM's office for a hike in the oil and other fuels that they provide to the common man.they have often taken the brunt of the rising oil prices and the common man for whom such essential fuel is subsidised,hardly feels the punch.but as the oil companies in India have pointed out,this sort of situation cannot go on forever and that sooner or later,the Indian public would have top be exposed to the Oil tango that is felt all over the world.so sooner or later the government of India like all the other governments all over the world will hike the prices up,it is just a matter of time.probably this may happen sooner than later!

Global warming-cold economy!

It may seem that the global economy may head for a big chill as a result of global warming.lets say that global warming wrecks havoc on earth and that the oceans do rise and that the low lying areas of land are flooded.what could this mean for globnal economy?
for any country that is affected,the least it would mean is more pressure on its economy as a result of loss of infrastructure,loss of lives,loss of arable land,delay,and more to come.actually the costs of the global warming has only been estimated at and that too it is on the low side.no one until noe has actually sat down,computated the effects of global warming,and the cross effects on all species,man and animal as well as the effect on all flora and fauna.once one has done that then estimating the costs of global warming could be done.but irrespective of whether that estimation is done or not,the effects of global warming is already being felt in many parts of the world vis-a-vis freak weather and it is irreversible.
the more business develops the more fossil fuel emmision increases and the global warming increases tenfold.so it is safe to say that,yes,the economy will indeed head for a big chill at this rate until some affirmative action is taken to deal with the fossil fuel emmision!