Crude oil prices have been declining sharply this week. On Thursday the prices plunged by nearly nine percent in the largest one-day drop in more than two years. According to many oil analysts, the killing of Osama Bin Laden may have been the catalyst for the rout in oil prices. Although the prices recovered slightly on Friday, after a positive report on US employment numbers, but for the week they registered a decline of more than 13 percent.
Bin Laden’s killing may have consequences beyond its obvious symbolism. There is a growing feeling in the region that the decade-long era of war on terror is coming to an end, to be replaced by more conventional law enforcement tactics against terrorist groups. Such development would certainly help ease the tensions in the region and the decline in oil prices after the Bin Laden news could indeed been caused by such expectation.
This has very little to do with Bin Laden and a lot to do with summer time that traditionally eases oil demand and the fact that the world recovery is faltering at the moment reducing demand for oil. I do not understand why this particular author likes to correlate practically everything to Arab uprising or terrorism.
ReplyDeleteAc cording to http://www.business-standard.com/india/news/commodity-price-fall-soothes-firms-nerves/434782/
and I quote:
"“The fall is best viewed as the negative impact of high commodity prices on consumption, especially of oil, slowing economic recovery in the US, and a period of relative softness in China’s demand for some key commodities such as copper and soybean,” a Barclays Capital’s Singapore-based analyst told Business Standard."
Anon "May 7, 2011 12:56 PM"..This author will always link anything even the most insignificance of world happenings to either Iran or the ME..Anybody who follows this blog will see a pattern.It's just the way things are done here..Their obsession about micromanaging Iranian affairs is just pathetic..
ReplyDeleteSometimes i kinda have a feeling they're unwitting pawns in US state department propaganda corp..