Where-O where could the "Speculators" be? :lol: :lol: :lol:
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Oil futures were in the red Wednesday morning as markets were inundated with mixed reports on the future of the global energy supply and demand.
The benchmark oil contract was recently lower by $1.59 to $57.74 a barrel. This is the first time oil has traded below the $58-a-barrel mark in 20 months, according to Thomson Reuters.
Despite recent reports showing weakening in global energy demand, the International Energy Administration warned today that energy supplies won’t keep up with growth without substantial infrastructure investment.
“We cannot let the financial and economic crisis delay the policy action that is urgently needed to ensure secure energy supplies,” the IEA said in a release. "The credit squeeze could delay spending, potentially setting up a supply crunch that could choke economic recovery.”
According to the IEA, even though energy prices are presently trending lower, this supply squeeze can push energy prices dramatically higher in the long-run.
“While market imbalances will feed volatility, the era of cheap oil is over,” the release said.
In the short run, however, the data are more bearish. Numerous energy consuming countries reported sharply lower economic growth expectations amid wide-spread financial turmoil. The Bank of England corroborated these concerns in its monthly inflation report released today.
“There has been a marked deterioration in the outlook for domestic and global economic activity,” the report said. “Instability in banking and financial markets intensified to levels not seen for almost a century.”
As wholesale energy prices slide, retail energy prices have slowly followed. Drivers paid $2.20 per gallon on average for regular gas nationwide, which is down from $3.21 last month, according to AAA's Daily Fuel Gauge Report.
Other energy markets were slightly lower: Heating oil was recently down three cents to $1.90 per gallon, RBOB gasoline was low by one cent to $1.30 per gallon, and natural gas traded lower by one cent to $6.70 per million British Thermal Units.
Metal markets were mixed: Gold was essentially unchanged at $732.50 per troy ounce, silver traded lower by 13 cents to $9.68 per troy ounce, and copper was also flat at $1.68 per pound.
______________________________________________________
Oil futures were in the red Wednesday morning as markets were inundated with mixed reports on the future of the global energy supply and demand.
The benchmark oil contract was recently lower by $1.59 to $57.74 a barrel. This is the first time oil has traded below the $58-a-barrel mark in 20 months, according to Thomson Reuters.
Despite recent reports showing weakening in global energy demand, the International Energy Administration warned today that energy supplies won’t keep up with growth without substantial infrastructure investment.
“We cannot let the financial and economic crisis delay the policy action that is urgently needed to ensure secure energy supplies,” the IEA said in a release. "The credit squeeze could delay spending, potentially setting up a supply crunch that could choke economic recovery.”
According to the IEA, even though energy prices are presently trending lower, this supply squeeze can push energy prices dramatically higher in the long-run.
“While market imbalances will feed volatility, the era of cheap oil is over,” the release said.
In the short run, however, the data are more bearish. Numerous energy consuming countries reported sharply lower economic growth expectations amid wide-spread financial turmoil. The Bank of England corroborated these concerns in its monthly inflation report released today.
“There has been a marked deterioration in the outlook for domestic and global economic activity,” the report said. “Instability in banking and financial markets intensified to levels not seen for almost a century.”
As wholesale energy prices slide, retail energy prices have slowly followed. Drivers paid $2.20 per gallon on average for regular gas nationwide, which is down from $3.21 last month, according to AAA's Daily Fuel Gauge Report.
Other energy markets were slightly lower: Heating oil was recently down three cents to $1.90 per gallon, RBOB gasoline was low by one cent to $1.30 per gallon, and natural gas traded lower by one cent to $6.70 per million British Thermal Units.
Metal markets were mixed: Gold was essentially unchanged at $732.50 per troy ounce, silver traded lower by 13 cents to $9.68 per troy ounce, and copper was also flat at $1.68 per pound.