Oil goes down 12pc during last week

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Oil goes down 12pc during last week

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According to experts, Osamas death is a main reason for decrease in oil prices.

08 May,2011 07:43 pm

Oil prices fell more than 12 percent during the week ending on May 06, the steepest decline in two and a half years. The prices reach $97.18 from $114 per barrel in New York and $ 109 from $125 per barrel in London. The most common reasons given by analysts for the sell-off was the strengthening US dollar, Osama’s death and Middle East unrest.Analysts say investors got nervous that oil, metals and grains had risen over the past few months to unrealistic heights. Their rush to sell also knocked silver prices down 28 percent, sugar down 13 percent and natural gas down 10 percent.Commodities such as oil and silver are bought and sold in dollars. When the dollar is weak, those commodities are cheaper for holders of foreign currency. Those investors sell when the dollar rises and commodities look more expensive to them. An index of the dollar compared with a basket of foreign currencies rose 2 percent for the week. But many investors who sold commodities this week may simply have been waiting for any sign, to get out of overheated markets.