According to Bloomberg:
Sept. 30 (Bloomberg) — Crude oil rose, rebounding from its biggest drop in seven years, after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package that may avert an economic slowdown.
Oil fell more than $10 yesterday and global stock markets were battered after the House of Representatives failed to pass a rescue bill and European governments bailed out three banks. The U.S. Senate will try to revive the financial package tomorrow.
“The market is being totally driven by what is happening in Washington,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York.
“What happens to oil prices depends completely on whether the rescue package is approved or not.”Crude oil for November delivery rose $3.74, or 3.9 percent, to $100.11 a barrel at 1:38 p.m. on the New York Mercantile Exchange.
Prices are down 32 percent from the record $147.27 a barrel reached on July 11.“We won’t be seeing oil near $150 anytime soon,” said Sarah Emerson, managing director of Energy Security Analysis Inc., a consulting firm in Wakefield, Massachusetts.
“Even if we get the bailout, there’s no guarantee that it will work.”
Read the full article at Bloomberg
-This bail out will be the key reason why oil prices goes up and down wildly that my gut is telling me about previously. The wild large flucuation due to bail out, possible fed Interest rate cut and more uncertain manupilation by the USA Government and Feds.
Well my guts are telling me about the larger wave is coming…hold on to your boat!
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