0712 podcast: oil price fell again

~reworte~

This podcast is that Jad Mouawad chiefly described that the crude oil price fell down to 60 dollars a barrel from 72 dollars a barrel last week. The mainly reason that the price decreased was that the economic recovery was not optimistic as people thought before. Jad Mouawad also mentioned that before we wanted to know why the oil price slid, we had to realize why oil price soared in the beginning of this year. The highest oil price, 145 dollars a barrel, was recorded in July 2008, and then the price dramatically crashed to 33 dollars in December 2008. The collapsed price resulted from the economic crisis. However, the oil price started to go up in the first six months of this year because some signs showed the economy would recover in the end of this year. Recently, the new economic data have been revealed, and the economic situation probably recovered more slowly. This reason impacted the oil price. There is a proposal which is planned to curb speculation trade in energy markets because the government tries to stabilize the energy markets. Some economists think this proposal will cause the less liquid in the energy markets, so that the energy markets become more volatile. Another idea was discussed in the podcast. Jad Mouawad said that the oil price is not determined simply by the demands and supplies. The oil price is controlled by some counties which produce crude oil. The oil markets are also not transparent, so it is difficult for investors to understand and predict.