The oil price has fallen by 15 per cent from its record high of $US147.50 a barrel set two weeks ago to $US120.42, with no sign that its decline has ended.
Light, sweet crude for September delivery fell $US2.54 to settle at $US122.19 on the New York Mercantile Exchange. It was the lowest settlement price for a front-month contract since June 10.
Earlier, prices fell to $US120.42, also the lowest level since June 10. Oil has now fallen more than $US25 from its trading high of $US147.27, reached on July 11. It was reported that speculators are quitting their bets that oil prices will continue rising.
Analysts are reluctant to predict where the price will settle, as there have been several dips in the market before that raised false hopes that prices would ease back to double digits.
" Once we break through $US120, we could easily slide through to $100," Darin Newsom, senior analyst at DTN in Omaha, said.
Light, sweet crude for September delivery fell $US2.54 to settle at $US122.19 on the New York Mercantile Exchange. It was the lowest settlement price for a front-month contract since June 10.
Earlier, prices fell to $US120.42, also the lowest level since June 10. Oil has now fallen more than $US25 from its trading high of $US147.27, reached on July 11. It was reported that speculators are quitting their bets that oil prices will continue rising.
Analysts are reluctant to predict where the price will settle, as there have been several dips in the market before that raised false hopes that prices would ease back to double digits.
" Once we break through $US120, we could easily slide through to $100," Darin Newsom, senior analyst at DTN in Omaha, said.
Most of the world's oil is produced at a cost of less than $US60 a barrel.
Speculators have been widely blamed for the surge in prices, particularly by the OPEC cartel of oil producing nations. Others, including the International Monetary Fund and, as recently as this week, a report by the US Treasury and the Chicago Futures Trading Commission, have cast doubt on the role of speculators, suggesting markets are responding to supply and demand.
Rising global crude oil prices caused inflationary pressure on the economy and the immediate negative impact is great. Most of the goods and services instantly adjusted its domestic prices even higher than the oil price hike.
An oil hike had a cascading effect on price rise and caused the inflation figures soared which heaps further the burden on people.
Theoretically, the sharp drop in energy prices should generate lower petrol prices at the pump and goods and services in the market.
The question arises; will the sharp drop in energy prices follow by sharp fall in the general level of prices for goods and services, subsequently, increasing the purchasing power?
1 comment:
barang sudah naik tidak akan turun.
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