Swine Flu Sees Crude Oil Price Slip
Tuesday April 28, 2009
Swine flu has taken its toll on crude oil price around the world as the market measures the long-reaching consumer effects of the potential health crisis in an already delicate market. Crude oil has fallen under $50 a barrel and speculators have predicted this price drop will continue off the back of continually increasing US oil reserves.
Beginning in Mexico, swine flu has affected citizens in the US and has quickly spread to Europe with Australia on high alert and New Zealand harbouring suspected cases of the disease. While treatable, the disease is potentially fatal and has governments and health authorities are advising against travel to affected areas, which mainly includes the Americas.
The flow-on affect has caused airline stocks to fall along with various transport and related sectors on stock markets around the world. The swine flu brings back memories for many about the SARs virus, which restricted travel to Asia and saw oil usage drop about 1 percent over the affected period.
Many market speculators have maintained that the affects should be minimal, but considering the growing oil reserves, continual economic downturns and the inevitable losses in supply, it seems the swine flu can only kick oil prices when they're down.
Many investors will consider ways to trade declining markets until crude oil price looks more promising and shows signs of rising. Depending on the eventual outcome of the swine flu, we may yet see further impact on crude oil price.