Oil prices slide, Wall Street Down

Stocks slump on Wall Street following a sharp decline in oil prices which is feared could reverse the energy sector is soaring high. Japan's nuclear crisis also gave negative sentiment.

Analysts worry about a rally of energy stocks had gone too far ahead of the financial reporting season, and the slump in oil prices could trigger further selling.

"The leader (of stocks) has occurred in the longest period in that sector (energy) are strongly associated with global growth and commodity prices. So once the distance of commodities begin to spin, then the shares start triggered to participate," said Robert Van Batenburg, head of research Louis Capital stock as quoted by Reuters, 13 April 2011.

On 13 April 2011 trading, The Dow Jones industrial average closed down 117.53 points decline (0.95%) to the level 12263.58. The broader Standard & Poor's 500 index also dropped 10.30 points (0.78%) to a level of 1314.16 and the Nasdaq fell 26.72 points (0.96%) to a level of 2744.79.

World oil prices continued to fall yesterday, after the International Energy Agency warned high oil prices of late could cut global energy demand.

Light sweet crude May delivery lost 3.67 dollars to U.S. $ 106.25 per barrel. Brent Oil May delivery sank 3.06 dollars to U.S. $ 120.92 per barrel.

"The focus has shifted from the unrest in the Middle East that have helped increase oil prices to their highest point since September 2008," said Matt Smith, an analyst with Summit Energy was quoted as saying by AFP.

Stocks falling energy sector, with energy index S & P 500 recorded dropped to 3%.

In addition to the energy sector, prices of other commodities stocks also weakened. Materials Index S & P lost 1.4%, with Rio Tinto shares fell 2.3%, Freeport-McMoRan Copper & Gold Inc. dropped 3.1%.

Trade moderate walk, with transactions on the New York Stock Exchange reached 7.53 billion shares, below the daily average last year which amounted to 8.47 billion shares.

Ambition Obama About Oil

President Barack Obama is targeting the United States (U.S.) will reduce dependence on oil imports to a third of current levels. The target was effective from 2025.

According to news agency Associated Press, Obama's ambitious targets apply it during a speech at Georgetown University, Washington DC, Wednesday, March 30, 2011. Obama realizes that all this time the U.S. has a dependence on foreign supplies.

However, the situation is aggravating the U.S. during the political turmoil of the Middle East, the region's largest crude oil supplier, and when the price of fuel oil in the land of Uncle Sam continues to rise. Actually, the promise to reduce dependence on oil imports had been proclaimed by the late President Richard Nixon in the decade of the 1970s, but difficult to materialize.

"The presidents and politicians always promise to achieve energy independence, but that promise has yet to materialize," said Obama. "This must be changed. We can not constantly rocked by issues of energy security and act every time gasoline prices rise, then fall asleep again when prices fall," continued Obama.

So, Obama stated that the U.S. government seeks to increase domestic oil production, promote the use of biofuels (biofuels) and natural gas, and make energy-efficient vehicles.

Obama then instructed government agencies to ensure that beginning 2015 all their service vehicles using alternative fuels, including the use of hybrid and electric technology. He is also targeting at least already have 15 million electricity-fueled vehicles in 2015.

However, the U.S. officials considered that the plan needs to big enough budget for research and development. The problem is, the cost was not yet certain.

source:vivanews

Oil prices rise Related to Political Crisis in Yemen

Oil prices rose on Tuesday linked the turmoil in Yemen which threatens energy exports from the Gulf region.

French oil giant Total (TOTF.PA) warned buyers of liquefied natural gas from Yemen LNG project that shipments from the country could face obstacles because of increased political crisis, although it is normal for this time.

Thousands of protesters took to the streets of Yemen on Tuesday, shouted at President Ali Abdullah Saleh to step down. Several top officials have left Saleh, who warned that the country would descend into civil war if he was forced to quit.

Yemen produces about 290,000 bpd of oil, mostly for export, and to ship transported 0.9 billion cubic feet per day of LNG, approximately 9 percent of Qatar's LNG exporters.

In Libya, a bloody battle between the regime of Muammar Qaddafi and the rebels who control the east of the country has reduced oil production from OPEC nations about 75 percent, to below 400,000 barrels per day.

"The situation in the Middle East is still very bullish for oil," said Phil Flynn, analyst at PFGBEST Research in Chicago. "The unrest spread over the conflict in Libya is still a market focus."

Brent crude for May rose 74 cents to settle at $ 115.70 per barrel. U.S. crude oil futures for July rose 1.67% to settle at $ 104 per barrel. More active May contract settled up $ 1.88 per barrel at $ 104.97.

"Generally, the Middle East tensions will strengthen Brent," said Bill O'Grady at Confluence Investment Management in St. Louis.

Oil prices rose after American, British and French launched missile into Libya

Oil prices jumped more than $2 a barrel on March 21, 2011 as the Western military action in Libya and continuing unrest in a host of other countries in the oil-rich Middle East region raised fears of possible disruptions to crude supplies.The price for crude oil has risen continuously since expectations of a solid economic recovery in the United States solidified last year, and oil prices have soared sharply in recent months after anti-government protests erupted in northern Africa and the Middle East earlier this year.