Post by Sailor on May 5, 2012 11:02:28 GMT -8
Oil in Free Fall as Economic Worries Spur Selling
Oil prices were in free fall Friday as worries about a weakening global economy combine with seemingly ample supplies and less fear of a confrontation with Iran.
Traders also point to new margin requirements by the CFTC, announced Thursday. However, those requirements do not go into effect until August, and the bigger factor behind the selling is concerns about a global slowdown.
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But the big driver is the concern that the U.S. economy is not strong enough to withstand a weak European economy and slower growth in China. The disappointing April jobs report Friday, showing just 115,000 nonfarm payrolls were added, was the latest catalyst for a second day of heavy selling.
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One positive effect of falling oil prices is that it will take pressure off gasoline and other refined products, making it more likely consumers have already seen the highest gasoline prices of the year. The national average is now $3.80, down from $3.92 a month ago and below last year’s average of $3.98, according to AAA.
More here:
www.cnbc.com/id/47295638
Oil prices were in free fall Friday as worries about a weakening global economy combine with seemingly ample supplies and less fear of a confrontation with Iran.
Traders also point to new margin requirements by the CFTC, announced Thursday. However, those requirements do not go into effect until August, and the bigger factor behind the selling is concerns about a global slowdown.
****
But the big driver is the concern that the U.S. economy is not strong enough to withstand a weak European economy and slower growth in China. The disappointing April jobs report Friday, showing just 115,000 nonfarm payrolls were added, was the latest catalyst for a second day of heavy selling.
****
One positive effect of falling oil prices is that it will take pressure off gasoline and other refined products, making it more likely consumers have already seen the highest gasoline prices of the year. The national average is now $3.80, down from $3.92 a month ago and below last year’s average of $3.98, according to AAA.
More here:
www.cnbc.com/id/47295638
