Excerpt from: Futures and Commodity News
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| August 05, 2008 | | Demand affects oil futures | Worries that demand is slowing are starting to affect oil futures in commodities trading. Following yesterday's slip in oil prices, today oil is plunging to below $120 a barrel.
The main concern regarding oil prices is mainly due to a worldwide economic slowdown. In the U.S., drivers have shown that they are willing to cut back due to high prices and a struggling economy. Elsewhere, in developing nations, there are worries that oil just cannot be afforded.
Oil futures are, as a result, being affected by these worries, since demand is likely to continue to slow.
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