Crude Oil
Surged the Most in More Than 2.5 Years
Crude oil
futures rose sharply today, with global benchmark Brent rising nearly 4.5
percent to $48.65. Prices had been dropping in the past six months, the longest
stretch since the 2008 financial crisis. Analysts said the prices had fallen so
far so fast that it was probably time to call a bottom, although it was way
pre-mature to say the bear market was over.
The
market was “overdue” for a correction, said Jeff Grossman, president of New
York-based BRG brokerage. “It’s been down, down, down; It’s lifting its head”
(Bloomberg, 14 January)
Photo credit: Getty Images
Photo credit: Getty Images
3 comments:
Iran’s leadership perspective on the issue (From Russia Today)”
"Rouhani said that while oil now only accounts for one-third of Tehran’s budget, some of the Gulf states are up to 95 percent reliant on it."
“If Iran suffers from the drop in oil prices, know that other oil-producing countries such as Saudi Arabia and Kuwait will suffer more than Iran,' he said."
"He added that 'Kuwait’s budget is 95 percent reliant on oil,' and 90 percent of Saudi Arabia’s 'annual exports are related to oil.”
He also said that falling prices for crude oil are the result of 'a plot that will be overcome with unity and resistance.”
Oil is the major source of hard currency for Iran, and the low oil prices would affect the imports in a country that depends on them. Low oil prices is a serious problem for Iran and its economy. How the GCC countries deal with the falling oil does not really matter much when it comes to Iran's own economy. the GCC also has the luxury of having hundreds of billions of dollars in their foreign currency and sovereign fund accounts.
I am sure President Rouhani is focused on the country's economy and is not just wondering how the GCC is being affected by low prices.
With all due respect Rouhani has zero power in Iran and could not change his turban with approval.
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