Crude Oil Futures Settle Higher on U.S. Jobs Data
The Wall Street Journal
By David Bird
March 7, 2013
http://online.wsj.com/article/SB10001424127887323628804578345653207763868.html
Summary:
U.S. crude oil futures prices climbed 1.3% to settle at their highest level in a week Thursday on hopes that signs of an improving employment outlook will translate into stronger oil demand. The price of oil rose and briefly topped $92 for the first time this month. Many traders believe that the large supply of oil in the U.S. has kept a lid on prices. Carl Larry, analyst at Oil Outlooks and Opinions said that the key is jobs. The economy will be improved and translate to jobs growth and higher demand for oil.
Opinion:
The market will need to overcome the level in order to continue higher. One important factor will be U.S. strength. After all, there was a stronger than expected jobs number for the month of February, and if there is more hiring going on in the U.S., then it means that there will more than likely be more manufacturing going on, of which there is normally more demand for oil. This week, we learned about demand. Oil is inelastic because their is no substitutes. However, if the price of oil keeps growing, the quantity demanded will eventually decrease. Therefore, the price should be balanced to satisfy the demand.
I heard the US plan from my history teacher in middle school. She said they are not using their oil because it would be useful when there are no more oil in West Asia. I agree with you!
ReplyDeleteThe oil price rose AGAIN? Oh, bother.
ReplyDeleteWe should start using bio-energy or electricity more actively, before oil runs out. Grace
Because many people are using oil as a activation of car(?), etc, increased of price of oil is big influence of economy. They have to develop substitutes like electric car.
ReplyDeleteOh, please, not the oil again!
ReplyDeleteKorea has lots of problems with it you know. US is getting along too!
Increase in oil price is a natural thing unless American people stop use gargantuan vehicles but drive a modest and small cars as Japanese do. Job creation can be a positive aspect of increasing in oil supply; however, it somewhat sounds as a pretext for continually maintaining high level of crude oil consumption. i hope oil industry and government to make a reasonable choice not only for current consumers but also future generations.
ReplyDeleteIt feels so sad that we have to rely on gasoline for almost all modes of transport. The supply of oil is extremely limited, and too much reliance on gasoline can't be good if the prices are getting higher.
ReplyDeleteI agree with your opinion and it is a nice summary
ReplyDelete