Tuesday, July 7, 2009

Oil prices drop to around $64. a barrel despite militant attacks in Nigeria

After the barrage of attacks by Nigerian militants in the Niger Delta on major oil facilities. The price of oil surprisingly dropped from an 8 month high of $73 a barrel last week to around $64 a barrel this week as unimpressive unemployment figures showed that America and Europe will not be making an economic recovery as soon as expected.

Head of sales trading for Saxo Capital Markets in Singapore shared these comments on the economy:

"It's not looking pretty in terms of economic data, the demand side fear is coming back into play."

"More and more people are becoming convinced we won't see a full-blown recovery any time soon."

Some other analysts still expect the prices to rise again on signs that the worst of the economic slowdown will soon be behind us. Gerard Rigby, an energy analyst at Fuel First Consulting in Sydney said "I think the market will look for some positive news and head back up toward $70, there's been some profit taking in the last week, but I don't think there was a real change in sentiment."

allAfrica      The herald bulletin

Related stories: Nigerian militants blow up Chevron and Shell oil facilities over the weekend

Wall Street reports Nigerian militants will attack Trans-Sahara pipe if built

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