Oil prices are now solidly below 70 a barrel and many analysts say they have more room to fall. That has americans celebrating as prices at the pump continue to fall, but not everyone is in a celebrating mood. Ill explain. But first, u. S. Oil futures settled at 69 a bashl. Prices seesawed between 63 and 74 a barrel. Prices have fallen 36 since peaking in june, and since crude oil is the main component for gasoline, prices at the pump have come down 29 in roughly the same time. The big reason that oil prices appear to be in free fall is because of a decision by opec producers last week not to put oil out put. Normally when demand lags, the leading Oil Producers get together and try to agree on supply cuts. But these arent normal times. Americas energy boom is creating more supply right when economies in europe and asia are starting to pull back on their demand for oil. Saudi arabia is viewed as the worlds sing producer. It has the ability to flood or cut supply into the global market.
Im ali velshi. And this is real money. Oil prices are now solidly below 70 a barrel and many analysts say they have more room to fall. That has americans celebrating as prices at the pump continue to fall, but not everyone is in a celebrating mood. Ill explain. But first, u. S. Oil futures settled at 69 a bashl. Prices seesawed between 63 and 74 a barrel. Prices have fallen 36 since peaking in june, and since crude oil is the main component for gasoline, prices at the pump have come down 29 in roughly the same time. The big reason that oil prices appear to be in free fall is because of a decision by opec producers last week not to put oil out put. Normally when demand lags, the leading Oil Producers get together and try to agree on supply cuts. But these arent normal times. Americas energy boom is creating more supply right when economies in europe and asia are starting to pull back on their demand for oil. Saudi arabia is viewed as the worlds sing producer. It has the ability to flood
The new cold war, russian president Vladimir Putin lark out at american policies, defending actions in crimea and ukraine in a state of the nation address, following an announcement that russia is scrapping a natural gas pipeline that was supposed to go through bulgaria and send gas to southern europe. Instead it will boost supplies to turkey using existing pipelines. Vladimir putin blamed the European Union refusal to give the go ahead for the multi billion project saying it left moscow with no other options. Russias relations with the west are at their lowest point in years because of the crisis in ukraine. The new cold war brewing had a dry run in another former soviet republic, georgia. And many issues that played out are the same as what we are seeing today. Go back to 2003. Thats when georgians elected suck us veilee president. A young reformer, he promised to rein in corrosion and bring separatist regions back into georgias fold. Two of those regionsal lied with russia. In 2006
And some data just came out on german business climate. The ifo german bit climate coming in at the estimate 104. 5. The number coming in at 105. 5. Slightly higher than what we saw in november and in line with estimates. The German Ifo Business sentiment came in at 105. 5. Why do we care about this . Germany, of course, is europes largest economy. Given its high exposure to russia, German Economy has been showing signs of weakness over the past couple of months. The recent zew survey did come in higher than expected indicating a improvement in Business Sentiment. Were looking at the euro slightly higher trading at 1. 2332. Lets bring in simon, who is joining us now to get your reaction to this german ifo number. Does this surprise you . We see this, the zew and the pmi data lately. I think mainly the main surprise is that theyre shrugging off the surprise coming out of europe. The most open economy, 35 export to gdp ratio. Thats a little bit of a surprise. And is this one reason, give
Earlier every year, but is it worth it . That and more for this wednesday, november 26th. Good evening and welcome on this thanksgiving eve. Susie has the night off. A quiet day on wall street ahead of the thanksgiving holiday with a winter storm blasting the east coast with snow, sleet and rain and temperatures that could freeze anyones giblets. Enough to push the dow and the s p 500 to a closing high and this happened despite another slump in oil prices, and a flood of economic da that that was as soggy as the weather. Steve liesman looks at the numbers and what they may mean for the economy moving forward. The weather turned sower ahead of the thanksgiving holiday and so did the Economic Data. A feast of economic reports released earlier than normal mostly came in below expectations and raised doubts where the upbeat Economic Data from the this cont to the fourth. The street was looking for a gain. Jobless claims spiked up by 21,000 to register the first read above 300,000 since Ear