According to the investors, the
high-ceilinged oil price has come up with positive news for the U.S. economy.
The price rose because of the fact that the private sector added almost 111,000
jobs in October 2011. The Automatic Data Processing reported that the service
industries got plenty of benefits.
As a result of soaring oil
prices, Benchmark crude rose by 32 cents to end the day at $92.51 per barrel in
New York, while Brent crude lost 20 cents to finish at $109.34 a barrel in
London. After a two-day meeting of the Federal Reserve, which doesn’t announce
any new policy, the prices on oil may slip a little bit.The studies depicted
that the decision taken by the Fed has a greater impact on oil prices. Hence,
such things influenced the currency and commodity markets. As a result of
alteration in oil price, Benchmark crude mounted 20% higher in 2010.
Despite the fact that consumers
are ready to spend more, it is a very difficult task to manage downside risk.
Hence, the economy is losing its importance on the commodity market. If the
economy stays standstill, then the central bank assures to take a leap step.As
mentioned by the Energy Information Administration, the prices on U.S. oil and
gasoline climbed up in the last week in October 2011 because of less demand for
oil. Another point to note down here is that the demand for distillate supplies
that include diesel and heating oil dropped enormously
The demand for diesel is
escalating because farmers require the fuel for harvesting. The retail price on
diesel has increased 80.1 cents higher per gallon. Its price will keep on
rising because of the existing market scenario. The price of gasoline is
soaring at $4 per gallon. According to the energy trading, the heating oil lost
3.72 cents to end at $3.0007 per gallon. Gasoline futures finished at $2.6272
per gallon. Natural gas lost 3.2 cents to end at $3.749 per 1,000 cubic feet.
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