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Stalled Economies Fueling Crashing Oil Prices

Oil Prices Coming Down

The deteriorating European debt crisis and the slowing United States economy are contributing to what is expected to be the largest monthly downslide in the price of oil in three years.

Demand for oil will plummet, analysts say, fueling a downturn in oil which resulted in oil closing yesterday 20 percent lower than the year’s high price of $109.77 a barrel.

“The problem is not only in Greece but several countries in Europe,” said Ken Hasegawa, at Newedge Group in Tokyo.  Hasegawa, a commodity derivative sales manager believes New York crude will fall to $75 a barrel by Q3. “Prices have fallen on the pessimistic expectations of the global economic recovery.”

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