Oil prices fell to near $90 a barrel on Wednesday in Asia amid expectations Europe’s sputtering economy will drag on global crude demand.
Benchmark oil for July delivery was down 38 cents to $90.38 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 10 cents to settle at $90.76 in New York on Tuesday.
Brent crude for July delivery was down 31 cents at $106.37 per barrel in London.
Crude has plunged 15 per cent from four weeks ago on investor fears that political turmoil in Greece could trigger a chaotic exit of that country from the euro common currency.
Over the last week, traders have closely watched Spain’s deteriorating economy. On Tuesday, Spain said retail sales dropped 9.8 per cent in April from a year earlier while credit ratings agency Egan-Jones cut the country’s debt rating for the third time this month.
“Fears of contagion amid Greek and Spanish debt and economic issues will continue to force downward revision in global economic growth and hence world oil demand,” energy trader and consultant Ritterbusch and Associates said in a report.
Europe’s wobbly economy has also weighed on the euro, whose drop has pulled oil prices down in recent weeks. A stronger dollar makes commodities priced in dollars, such as crude, more expensive to investors with other currencies.
The euro fell to $1.2463 from $1.2487 late Tuesday in New York.
If India is to improve its Balance of payments , Crude oil imports should be reduced drastically . Freebies on Petrol for VIPs' should be curtailed or stopped - Strict limits for Government cars that follow VIps due to security reasons should be limited to minimum - Rupee may hit 60 rupees for a dollar by year end- NRI guys will be benefitted most-
The best way of getting over this is to walk, cycle and use public transport. With absent public walkways, absolute lack of will to enforce traffic discipline and extremely poor mass transport systems in most places in India, more and more people are resorting to the use of oil-driven two and four wheelers. Owning these vehicles is a social symbol. Unless we change our mindset, no one can help us.
It may sound funny, but only way to get rid off these problem is judicious use of Oil. Why not start using Bicycle for places near to our home like for purchasing Grocery and other daily essential needs? It certainly helps in 3 ways - First we will have good health, Second our Petrol bill will reduce drastically and Third it will also help to reduce Pollution.I have purchased a bicycle for which one time Air fill costs me 5 rs. that too once in a month.
We need to go for alternate energy sources. Oil is dominating us economically and harming the environment too. It seems the only way for oil prices to decrease is for recessions and faltering economies.
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