ForexNewsMarket.com 2/16/2009 News

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2/16/2009 Forex News

Demand for Crude Oil to Drop Within The Next Few Months

International demand for crude oil has seen a drastic drop the past 6 months and prices have followed. Despite efforts by producers to decrease supply in order to stabilize the market and a small rise in prices over the past few weeks, the demand for crude is expected to drop even further in the next few months.

As prices rose the highest on record during the summer of 2008, oil companies reported record profits. While the oil companies were reporting their financial gains, those at the pump were much less optimistic. The cost of living had risen sharply due to the cost of oil, weakening the economy among other factors.

The oil bubble finally popped when the recession in the United States began to effect the international economy in the late months of last year. As demand fell rapidly to less than half of the highest price during the summer.

Now, once again, experts predict a drop in oil prices. Is 99 cents/gallon in our future? Only time will tell.

High Unemployment in th UK

There are new problems for the UK which is already in a deep recession. Recent hikes in the unemployment rate show the countries plight is getting worse and, despite efforts by the government to counteract the problem, the situation may get worse.

As unemployment rises, consumers, like those in the States, are spending less, slowing the economy further.

The economy & unemployment rate are both expected to worsen by 2010, leaving the UK in an even more dire state than it currently finds itself.