Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
S&P SEASONAL ANALYSIS - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Crude Oil Follows Euro Lower

Commodities / Crude Oil May 07, 2010 - 06:37 PM GMT

By: LiveCharts

Commodities

Crude oil prices have been sinking this week with the plunge in the Euro resulting from serious concerns over the credit worthiness of major European economies including Greece, Spain, and most recently, Portugal.


One barrel of crude oil fell $1.88 to $75.23 in mid-day New York Mercantile Exchange trade Friday (May 7).  This is quite remarkable considering just Monday oil prices were at an 18 month high near $87 per barrel.

There have been a number of catalysts affecting oil this week.  Despite a huge British Petroleum spill, the pressure on oil has been overwhelming with the fall of the Euro and Pound against the greenback.

Just today, Germany elected to offer support for Greece which is in extremely poor economic condition.  Spain has had troubles and just this week, Moody’s has announced it plans to review the debt rating of Portugal for a possible one to two notch reduction on its bond rating.

It has been a peculiar week for the global marketplace, which makes a $12 drop in oil prices pale by comparison.  The Dow Jones Industrial Average saw its largest single intraday loss ever Thursday when it fell nearly 1,000 points in late day trade. 

While various reasons have been discussed, it appears as though fear about the spread of the European credit crisis and an overwhelming number of stop orders triggered the sharp fell.  A quick replacement left the Dow deficit at a more modest 335 points by the day’s end.

The Euro is headed for a major test of support at $1.25.  Many analysts have said that oil prices have been inflated for months and there is no justification for $80-plus prices.  A break of $1.25 in the Euro could lead to a steeper drop, likely to coincide with a sharper fall in oil prices.

The good news for American consumers is that gas prices are being held in check as the normally busy summer driving season approaches.  The national average price for a gallon of unleaded gas was $2.92 Friday.  This is still much higher than at the same time last year.  But, a drop below $2.70 would put gasoline below its same price from June 2009.

Neil Kokemuller

LiveCharts.co.uk

Neil Kokemuller is an Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa, USA. He has a MBA from Iowa State University. He is also in house stock market commentator at Live Charts UK, where you can find real time charts and share prices .

Copyright © 2010 Live Charts

Please note: The information provided in this article is intended for informational and entertainment purposes, and not as advice for financial decisions or investments. Actions taken on the basis of the information shared is at the sole risk and discretion of the individual. Currency investment poses significant risk of loss.

Live Charts Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in