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Friday, June 22, 2012

Bringing Down the Price of Oil

When there's negative news from abroad
And the US recovery's flawed,
It precipitates shocks
To oil and stocks
In Chicago, New York & Riyadh.

"Be careful what you wish for; you just might get it." Everybody wants cheaper oil, but it often comes with a cloud over it, bringing lower stock prices along for the ride. On Thursday, the Dow Jones industrials fell 1.96% as negative economic news from Europe and China combined with the announcement of a manufacturing slowdown in the Philadelphia Fed district to cast a pall over US growth prospects. US crude oil prices responded to the weak data by falling to $78.20 a barrel, a new low for the year.

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