Monday, January 7, 2008

Oil Prices Extend Decline on Worries About US Economy

VIENNA, Austria (AP) -- Oil prices fell Monday as a report of growing unemployment in the United States raised concerns of an economic downturn that could curb oil demand.

The U.S. Labor Department said the unemployment rate jumped to 5 percent in December -- its highest level in more than two years -- from 4.7 percent in November. Analysts had expected December unemployment at 4.8 percent.

"Many economists in the U.S. have talked about the potential of the U.S. getting into a recession," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "This latest government report ... has added to the concerns about the economy."



Sounds like all hype to me, your thoughts?

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1 comment:

Bryan Crum said...

"US Economy Woes" have been discussed regularly on CNBC for at least the last 8 weeks. Many expect a slowdown and are "watching" but fear saying much more than that - probably because no ones knows if or when it will happen, so they don't want to be wrong on public TV. Even former Fed Chair Greenspan has given warnings of a slowdown.

My simple position: no new investments in US equitities (not selling either). Continue to build my cash reserve (money market funds). New investments in foreign market index funds (China, India, Brazil).

I am not knowledgeable about commodities trading, but if I were, I would likely be buying that now too.