Oil retreats to $55 as dollar rises on Fed hike

An experienced guide to the world of finance
providing tools and information that help make
best financial decisions

		My FinanceGates.com		Register

Home

Reviews |

Reviews

News & Commentary

News

Reviews

Columnist Articles

RSS News

Economy

Economic Charts

Financial Calendars

Banking & Loans

Loan Rates

Deposit Rates

Rate Alert

Banking Top Rating

Education

Banking

Investing

Stock Brokerage

Dictionary

Financial Directory

Banking

Funds

Insurance

Stock Brokerage

Billing

My FinanceGates

MLS Canada

Reviews

Columnist Reviews

Wednesday March 23, 08:15

Oil retreats to $55 as dollar rises on Fed hike

(by Julia Jenson)

Send link to friend

Oil retreats to $55 as dollar rises on Fed hike

Oil prices have dropped to around $55 a barrel as the US Federal Reserve raised the nation’s key interest rate another quarter-point to 2.75% and signalled that the pace of the tightening can accelerate by the end of the year. It was speculated that the higher US interest rates could slow down the economic growth and bring down surging fuel consumption. The dollar rising on the news also took some value off the commodities prices.

OPEC decided to postpone a projected 500,000 bpd increase in output that could add another half-million to the already agreed hike in official target agreed upon in the cartel’s March 16 meeting.

The market is anticipating U.S. government report that is to be released at 10:30 a.m. EST today. The report is expected to show a rise of 2 million barrels in US crude inventories in the week to March 18. Analysts project a rise in gasoline stocks of 1.2 million barrels and a hike of 1.3 million barrels in distillates.

Sheikh Ahmad Zaki Yamani, the former Saudi Arabian oil minister, expressed his belief that the oil prices at their current levels are not sustainable as they will affect the consumer spending and the US trade deficit.

“What happened by the late 1970s and early 1980s will be repeated, it is only a matter of time, definitely,” said Sheikh Ahmad Zaki Yamani. Then, as the oil price hit its highest level ever in real terms, the hike was followed by a drop that was only delayed by Saddam Hussein’s intervention in Kuwait.

All reviews

Read the related news and articles:
27 May 2005 08:09 AM	Oil above $51, gains trimmed by dollar rise
26 May 2005 07:13 AM	Oil shoots up on weak US inventory report
25 May 2005 09:28 AM	Oil around two-week peak on shutdown of Texas refinery
24 May 2005 08:45 AM	Oil around same level as refineries step up output
23 May 2005 10:40 AM	Oil prices down on rising US inventories and French refineries resuming production

SUBSCRIPTION

Join FinanceGates.com mailing list and get news and financial advices on home finance, auto finance, insurances, funds, online payments and much more.

Copyright © FinanceGates.com - independent financial advice and personal finance advice, an InternetGates.com company, 2003-2008. All rights reserved.
Finance Gates provides personal finance advice on banking, insurance, investing and billing.
Reading materials of this site you can be sure that you get independent financial advice.