Finotec News Archive - May 12 2008
Oil dropped after six consecutive days of gains
Crude dropped today in New York on concerns that prices have risen too far, too fastJoana Fonseca
12 May 2008
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Oil climbed to a record high last week, trading above $126 a barrel, as violence in the Middle East heightened worries of supply disruptions in the world’s largest crude production region. However, crude dropped today in New York on concerns that prices have risen too far, too fast; oil traded at $125.66 at 7:00am GMT. “The oil market certainly has scope for a correction,” said Victor Shum, senior principal at consultants Purvin & Gertz Inc. in Singapore. “If there is more talk of potentially raising OPEC output and then crude oil inventories in the U.S. continue to grow, that will help damp down some of this bullish enthusiasm.” Speculators are trying to push oil up to $150, although there is no such demand for oil, which may give some support to the commodity.
Finotec Analysis Team
12 May 2008
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