Excerpt from: GFT Analysts in the News
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| July 16, 2008 | | Slowing demand forces oil prices lower | The US economy is faltering, and it is finally having an effect on oil prices. Bloomberg reports on US demand and oil futures:
``With each passing day we are reading about more car
companies cutting back on production, airlines slashing flights
and consumers driving less,'' MF Global Ltd. analyst Edward Meir
said in a report today. ``As the pace of demand destruction
accelerates, it will be harder to ignore.''
Speculation on future demand for oil by developing nations can support oil prices only for so long. At some point, current demand has to be taken into consideration. And right now, the US economy is reducing demand for oil, and oil prices have no choice to respond.
The big question now is whether they will really fall that much further.
| Topic Tags: demand oil, futures trading, GFT, oil futures, oil prices, spread bets oil prices, spread betting commodities, US economy | |
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