Crude oil prices now steady after major drop

June 24th, 2011 - 10:13 pm ICT by Aishwarya Bhatt  

Washington, June 24 (THAINDIAN NEWS) Price of crude oil has now steadied after a major price drop. In fact the drop was so drastic that the IEA was forced to call in for emergency crude supplies. However later thankfully, the price of crude oil steadied and it reached $91.65 per barrel on the New York Mercantile Exchange.

However in Britain, the price of the August delivery slipped and it was around $106.90 per barrel at the ICE Futures exchange.

World analysts had their own theory about the drastic drop in the oil prices. They fear that the global economy is again taking a beating and the increase in prices of the crude oil could have devastating far reaching effects. They also added that increase in prices of the crude oil would in turn decrease the demand from the customers, which would in turn feed the economy to slow down all the more.

“We think the IEA did the right thing, since we believe that world economies were on the verge of a dangerous energy-induced slowdown, if not an outright recession. Breaking the back of this price spiral was therefore important in so far as some of the recent inflationary gains will now likely be reversed — assuming energy prices continue trending lower — while more importantly, central banks in key emerging markets will be less inclined to raise rates,” according to Edward Meir.

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