Crude Oil dropped from its nine month high and as of this morning is hovering at 106.18. There are several factors contributing to the reprieve crude oil's rise, first being the announcement that U.S. stockpiles of crude oil had increased. Additionally, the demand for gas and oil has down for some time in the U.S. Some cite the high prices and the still recovering economy for this decline in demand. Also contributing to the dip in crude oil prices are indications from Europe and China that they too are experiencing a fall in demand for crude oil. The ongoing Greek debt crisis and the overall uncertainty that surrounds the euro-zone's economic health could very well be a contributing factor to the decline in crude oil. As for China, the demands for oil dropping could also be reflection of the contraction that the manufacturing sector has been experiencing as of late.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
