There were no dog days of summer for most of the country this year — so folks didn't have to suffer through intense heat and humidity.
Instead, we were confronted with the devil days of summer: in a Ukrainian sunflower field, in Gaza and, this week, in a sandy desert killing field in occupied ISIS territory.
For those who follow the flow of the markets and the flow of oil from these treacherous regions, one question emerges from these devilish episodes: Why, given all the turmoil in the biggest oil producing regions, has the price of crude fallen 13 percent this sorrowful summer — from a June high of $107.26 to just over $93 a barrel on Friday?
The global turmoil has sparked fears that oil prices would spike well into the triple-digits.
But lack of demand on a global scale is putting a damper on the oil market.
Perhaps more than any other leading indicator, the slumping price of oil is sending a signal that the global economy is at stall speed. In Europe, consumer spending is falling at a dramatic rate, while the Russian and Chinese economies continue to slow. As one Dow 30 CEO put it, "There is no recovery in Europe, whatsoever."
Curiously, Fed Chief Janet Yellen didn't address any of this in her much-followed speech from the annual Central Bank sleepover in Jackson Hole, Wyo. — despite the fact that the slowing global economy could have the greatest impact on her tenure over the next 12 months.
Sure, no one wants to see sky-high oil prices. Remember the summer of 2008, when runaway gasoline prices prompted every newscast in the nation to begin its broadcast with harrowing stories of pain at the pump?
Back then, crude topped $140 a barrel as the housing bubble was preparing for its ultimate burst. By that December, crude had fallen by $100 a barrel to a level of $48 as the global economy convulsed.
This summer has been merciful to day-trippers — but careful what you wish for.
Anda sedang membaca artikel tentang
Stalled economy burns oil
Dengan url
http://susuvirus.blogspot.com/2014/08/stalled-economy-burns-oil.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Stalled economy burns oil
namun jangan lupa untuk meletakkan link
sebagai sumbernya
0 komentar:
Posting Komentar