Iran & Nigeria Push Oil Price Increase
January 14, 2012
Iran & Nigeria Push Oil Price Increase
Nigeria threatens to halt production of crude oil as part of a national strike against the United States. It triggers the rise in crude oil prices on world oil markets.
Nigeria which is the fifth largest crude oil exporter to the U.S. managed to hoist the price of oil approached $ 100 per barrel level for the negotiations to prevent a strike in Nigeria ended without result.
Analysts said oil supply will go down in the short term if it ceased production. Oil prices also rose as the European Union and the U.S. states will likely do the embargo to Iran next summer.
“I think oil prices will continue to strengthen as it is. We also have a common view that the U.S. dollar will remain weak, which makes commodities priced in dollars cheaper for those who transact using other currencies,” said commodities analyst from ANZ Natalie Robertson as quoted by the Associated Press (AP), Friday (13/01/2012).
Benchmark crude for February delivery rose 76 cents to USD99, 86 per barrel in electronic trading on the New York Mercantile Exchange. Prices are down sharply before the close Thursday in New York, settled $ 2 lower at USD99, 10, after reports that the EU may not be the oil embargo of Iran until the summer. Read more
Downgrade Issues European, U.S. Stock Market Weakens
January 14, 2012
Downgrade Issues European, U.S. Stock Market Weakens
U.S. stock markets finally fell on the weekend after the four previous periods are always stronger. The trigger is a step in the Standard & Poor’s credit ratings downgraded over the nine-nation eurozone.
The rating agencies downgrade reported on the euro zone countries, including France and Austria, but also mentioned ranking of Germany and the Netherlands did not change.
“The situation will become increasingly unstable and will lead to greater funding needs because they are all based on the ranking of AAA, and now you will have a AA + to France and Austria. While debt rating Italians will probably go down two levels,” said Director of DME Securities Alan Valdes as quoted by Reuters on Saturday (14/01/2012).
In recent days, the S & P 500 has reached a five-month high on U.S. data behind a solid economic. The close relationship between the stocks in the U.S. and the eurozone become unidirectional in recent weeks. That is, investors are not focused will the euro zone woes. Read more