New York Stock Exchange opened Tuesday's session down almost 2%, while market losses continue due to the developments in Japan. After the meeting opened with a stock market decline of 2.2%, the Dow Jones Industrial Average has decreased reaching a low of minus 1.73%. S & P 500 Index had a 1.81% decline in half an hour after opening, while the Nasdaq Composite index fell by 1.95%, having opened with a decline of 2.7%.
On the other hand Oil fell to its lowest price in almost three weeks in London as concern that damage from Japan’s earthquake may limit crude demand outweighed speculation of supply disruptions in the Middle East. Crude oil may fall to $92 a barrel after declining from a 29-month high, according to a technical analysis by brokerage Auerbach Grayson.
Nevertheless, the International Energy Agency exercises caution by keeping its outlook for global oil demand in 2011 with very little change, saying more time is needed to determine the impact from the worst earthquake in Japan’s history.
Nuclear danger that loomed ever since the construction of the first nuclear power station is once again reality. This gives some more time to the use of oil in energy, but oil shall be out of the picture, too. From USD 120-150/barrel alternative energies become efficient enough to make oil use part of the past, exactly as analog devices were replaced by digital ones! Nevertheless, oil has no real replacement in petrochemistry and some other fields, so it is room enough for oil in the market for some time...
ReplyDeleteMost probably you are wrong. Call transactions in summer have already reached USD 200/Barrel. And I do not see too many rushing to replace oil...
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