Drop in Crude Oil Price

Posted by 0dmin on November 13th, 2007 at 03:53pm

Although the price of a barrel of crude oil increased the previous months spectacularly and hovered last week even around the 100 US dollars. This week every piece of little news related directly or indirectly caused a immediately fall of the crude oilprice. All crudes like brent(north sea) light sweet and NYMEX dropped heavily in value this week all by the news of the worldwide economy cooling down.

The crude oil price fell with more than 0.8% to 93.87 dollar from historical heights after the international energy agency (IEA) adjusted the expectation for the demand for crude oil and gas in the rest of 2007 and 2008 downwards.
Intraday on Teusday it only got worse, the oilprice slipped below the 91 US dollars a barrel.

Tuesday the 13 November the IEA lowered its expectation for the worldwide oil markets and forecasts the demand will decrease this year with 570,000 barrels per day. For next year the same outlook is communicated, the demand for crude oil will be lower than most investors now expecting. In accordance to the IEA the consumers already adapting to new raised prices of oil, gas and fuel at taking higher prices in account.

Also the falling US economic growth in the United States contributes to the decreasing demand. This official statement of the IEA comes in front of the meeting of the OPEC, the organisation of oil exporting countries, which takes place next weekend in Riyad. Different OPEC deputies already said that the chances of possible oil production cuts are very limited.

Under Crude oil+ Fuel Oil+ OPEC