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AnalysisOil prices last week plummeted as a result of the U.S. economy, the world's biggest crude consumer releasing its jobs report revealing that the job sector remains fragile as more Americans become jobless. With more employees becoming jobless means that demand on energy products is weak which therefore weighs on oil prices, as a result we saw that Friday, the oil contract shed $0.87 closing at $69.95 while recording a high of $70.69 per barrel and a low of $68.32 per barrel.

 

U.S. stocks ended the week last week declining as a result of the jobs report released showing that the nation shed more jobs than had presumed and this caused pessimism in the markets scaring investors away from equity markets. Looking at oil shares we see that Exxon Mobil shed 0.69 points or 1.02% to $66.58, Chevron Corp. slid 0.67 points or 0.97% to $68.14 while ConocoPhillips gained 1.30 points or 2.85% to $46.80.

 

Today, oil prices are steady as investors are eyeing data this week concerning company earnings which will hint what trend oil prices are taking as with higher company earnings means that industries output is improving therefore meaning higher demand on energy products which will boost oil prices. The markets today opened at $69.81 while recording a high of $70.22 per barrel and a low of $69.28 per barrel.

 

Once again from our projections we see that oil prices in the medium term will continue to plummet as the global recession remains which is crippling oil demand and scaring investors away from oil markets as prices are still to decline.