The global market slowdown, following the economic crisis in Us due to cut in interest rates, perhaps attributed to the gradual slides in oil prices. Oil price is at $87 per barrel, recorded on Wednesday. Oil crisis is still one of the major problems in the global market which is said to be gradually subsided.
While oil prices are down almost 12 per cent from their all-time peak above $100 a barrel hit Jan. 3, they are still up more than 60 per
cent from a year ago, supported by tight inventory levels, Opec production restraints and strong demand from investors seeking higher returns and a possible hedge against inflation.
Goldman Sachs said that, while oil prices could slide into the low $80s if speculators liquidated their long positions, strong fundamentals would probably prevent funds from selling out completely.
US crude oil stocks, which rose last week for the first time in nine weeks, after hitting their lowest since 2004, were believed to have risen by 2.1 million barrels last week, a preliminary Reuters poll of analysts found.
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