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News :: Economy |
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Oil falls, stocks rally, dollar continues to fall |
Current rating: 0 |
by Joe Futrelle
Email: futrelle (nospam) shout.net (verified) |
03 Dec 2004
Modified: 12:10:48 PM |
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The price of oil has dropped significantly (about $2.50/barrel) this week, and stocks are jubilant, although other economic news, such as today's weak jobs report, is damping the enthusiasm a bit. Oil is still up over 50% from a year ago, though.
Meanwhile natural gas has risen sharply over the past few days, reversing a recent downward trend. It is currently about 170% up from when it rose sharply in 2000 after a long period of stability.
Consumer spending was weaker than expected in November, with some analysts suggesting that energy prices were a contributing factor.
The dollar slid back towards its record low against the Euro as currency traders anticipated the disappointing jobs report. There's no sign of a collapse yet, but you might want to start boning up on hunting and gathering, just in case.
Despite the good news on oil prices, the overall economic picture is troublesome. Oil producers are still running at capacity and demand is still rising, so there is little prospect for a long-term return to lower prices. If energy prices are keeping employment from growing, wages remain stagnant, and consumer debt continues to increase, the current recovery may evaporate further. |
See also:
http://www.wtrg.com/daily/oilandgasspot.html
http://www.bloomberg.com/apps/news?pid=10000101&sid=aRlb2q0Sq49Q
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This work is in the public domain |
