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Oil Prices Continue to Plummet this Week

Middle East : 20 March 2010

Oil prices continued to drop this week and this is largely due to a very strong US dollar which discouraged investors from purchasing analysts have stated.

Other factors which have contributed to this outcome include a weak Euro currency which fell significantly on Thursday and Friday and this meant that investors were much more likely to stick with the dollar and thus ensured a drop in Oil prices. If the Euro were in a stronger position than the dollar this usually tends to increase oil demand and prices.

New York light sweet crude’s price fell by almost 60 cents per barrel and London’s pent North Sea crude was down close to 70 cents per barrel.

Another factor in this current low Oil price trend is the current state of the Greek economy. At present its large debt problems mean that the expected output levels that OpEC hoped would be maintained failed to materialize. The European Union are trying to counteract the current dilemma by seeking out more competitive finance for Greece to allow them to re-capitalize their debts at similar rates that other EU member states are currently paying.

Greece is very unhappy with  what they preceicve to be the European Unions lack of response at present and are considering seeking assistance from the European monetary Fund.

OpEC’s decision to keep their output levels unchanged at present has been greeted with a tepid response by some, but they will review this decision again at their next conference which will be in October.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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