The major energy consumers of oil prices on the sidelines
Airlines, trucking companies and other large of energy consumption is now forecast that oil prices will decline further. Worry about if the global economy slowed down further in view of the market, oil prices could plummet and therefore a lot of energy consumers are not willing to buy in the current level of oil prices.
Commodity bankers pointed out that the price of oil has dropped from $ 125 a barrel in March to $ 90, a decline of 30%, but most of the oil market, consumers are still on the sidelines. Last week, the Brent crude oil price has dropped to the lowest point in 18 months.
Oil consumers are worried, mainly due to a big oil consumer China’s economic slowdown, the euro zone sovereign debt crisis led to the fall in oil prices is a one-oil prices “diving” the beginning. Saudi Arabia’s oil production this year has been increased to a new high of 30 years, and further depress prices.ルイヴィトン新作
Bi Luo Fatih Birol, International Energy Agency (IEA) chief economist Birol told the Financial Times: “If the global economy continues to deteriorate, downward pressure on oil prices increases is also expected. ”
The current wait-and-see attitude is exactly the same with the main performance of the major oil-consuming in the beginning of the financial crisis of 2008, was the historical high oil prices from nearly $ 150 a barrel fell to a low of $ 45. However, once the U.S. and EU sanctions against Iran or Saudi Arabia cut oil prices, it will backfire. A New York commodities banker said, “So far, hedging activities are not yet evident if oil prices lower and lower to $ 10, we expect that consumers will buy appropriate.”
The companies have developed a hedging program, but the anecdotal evidence confirms the view of the bankers. America’s largest low-cost carrier Southwest Airlines (Southwest Airlines) told investors that its hedging in the second quarter of operation, “minimal”.
In afternoon trading yesterday, Brent crude fell $ 1.03 a barrel at $ 89.93.
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