Tumble In The Price Of The Oil
While some of the things that are happening on an international level make United States to be proud of finally “defeating the enemy”, on the economic side things are not going as well as they are supposed to. Oil price does not reach the supposed target and it even tumbles 7%.
The main reason for which this has happened is the increase of the dollar strength on the market. While it used to be at a rate of $6, or 6%, to $103.25 a barrel midday on Thursday, the European market fell and it got to $6.60 to $114.59 a barrel. What made the dollar strengthen is the decision of the European Central Bank president – Jean Claude Trichet, who decided that even though there is pressure on inflation, there is no intention of changing the interest rates.
This was an expected thing, but it was not expected to be such a big drop and people did not take the proper measures to keep themselves away from unemployment, money loss, worries.
Daniel Flynn, an energy trader at PFG Best said that the “This entire week has been absolutely crazy,”. This lead to less gasoline buying, less consumption per all market shares and therefore, a real question sign as far as the future economy situation and how long will it last for.
The crude oil prices are under careful surveillance and they expect to see better times as June and July are coming up.11