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Digital News Report – Economic concerns continue to drive down the price of oil despite unrest in the Middle East.
Oil futures on the New York Mercantile Exchange (NYMEX) had been advancing until Monday last week. Light Sweet Crude for April delivery fell to $101.19 a barrel today. Since the settle oil fell another $2.40 to $98.79.
There are several factors that affect the price of oil, including economic and supply factors.
Economists are worried that the earthquake in Japan Friday will drive down stocks and commodities. Economic factors play a role in oil prices – the worst the economic outlook, the lower the price of oil.
Supply concerns will also affect the price of oil. If the supply of oil is disrupted, the price will also spike. The Libyan conflict caused oil prices to jump to $105 a barrel.
Today Brent crude is also down on the Intercontinental Exchange (ICE). April futures hit $113.84, down $2.05.
Apparently economic concerns are out-weighting supply concerns right now, or investors feel that the Saudi Arabian action will ensure the supply of oil. Of course this may change depending on what happens in Bahrain.
By Tina Brown