Crude oil prices slump to four year lows
Source: Fibre2fashion News Desk Date: 2008-12-16
Crude oil futures slumped to a new four year low on Friday amid emanating reports that the US was heading towards a long and deep winter depression. Light sweet crude fell to a four year low of US $40.50 per barrel before closing at $40.81 per barrel.
Earlier in the day, the new President elect had sent out a warning by saying that the worst was yet to come on reports of unemployment levels reaching 6.7 percent in November, again the highest levels in fifteen years.
He added by saying that "Our economy has already lost nearly 2 million jobs during this recession, which is why we need an Economic Recovery Plan that will save or create at least 2.5 million more jobs over two years while we act decisively to maintain the flows of credit on which so many American families and American businesses depend,"
Since oil prices move on a demand economy, the recessionary trends are taking a toll on this vital raw material of the textile industry. The National Bureau of Economic Research, a non-profit panel of economists, announced that the US has officially entered a period of recession since 2007.
On 5th Dec in the US market, price of WTI crude oil closed at $41.57 per barrel, up 76 cents while BRENT closed at $39.74 per barrel, down $2.54. Week end closing of Asian market for January WTI was $44.14 per barrel, up 47 cents, while on the other hand January BRENT settled at $42.83 per barrel, down 55 cents.
Crude oil prices reigning today are just 25 percent of the prices ruling in July 2008 when they had touched a peak of $148 per barrel.
