• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 2 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Rising Middle East Risk Sparks Fear of $100 Oil

Rising Middle East Risk Sparks Fear of $100 Oil

In case of further escalation,…

Is $100 Oil Within Reach?

Is $100 Oil Within Reach?

We have a situation where…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Premium Content

Crude Oil Prices Fall Below $80 Again as Officials Anticipate Slower Growth

Oil Market Summary for 08/09/2010 to 08/13/2010

Crude oil prices slumped below $80 a barrel again this week as the Federal Reserve and other official forecasters took a dimmer view of the economic recovery.

Friday’s closing price for the benchmark West Texas Intermediate futures contract of $75.39 a barrel marked a retreat from the contract’s short-lived foray outside the $70 to $80 a barrel range it has been trapped in for months. Prices fell nearly 7% from last Friday’s close of $80.70 a barrel.

The Federal Open Market Committee, the policy-making body for the Fed, said Tuesday it will keep interest rates low for “an extended period” amid signs that the recovery is slowing.

Citing recent economic data as evidence, the FOMC concluded that “the pace of economic recovery is likely to be more modest in the near term than had been anticipated.”

Worries about the recovery and the possibility of a double-dip recession hit equities and commodities markets alike in the wake of the Fed statement. The Dow Jones Industrial Average lost nearly 4% on the week, closing at 10,303.

The Fed itself did not adopt any new monetary stimulus, but in addition to keeping interest rates low, it will reinvest the proceeds from maturing mortgage-backed securities into long-term Treasuries rather than allow its balance sheet to shrink from its high levels during the financial crisis. The central bank also noted it has a number of other tools to use if necessary to stimulate the economy.

Global market participants also worried about a slowing of Chinese economy as authorities in that country try to dampen demand and prevent it from overheating. Import increases lagged export growth in the latest month, indicating a drop-off in domestic demand.

The International Energy Agency on Wednesday revised its estimate for this year’s oil demand slightly upward, but also warned of increased downward risk if the economy falters.

OPEC sounded a similar note on Friday, raising its forecast for world oil demand this year a tick, but warning that a phasing out of fiscal stimulus could dampen demand in the second half of the year.

ADVERTISEMENT

By. Darrell Delamaide for OilPrice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News