Oil prices slipped below $48 a barrel Thursday as investors grappled with the prospect that global growth next year will slow more than originally feared, cutting demand for gasoline crude products. Oil prices have fallen about 65% in four months, plunging from a record $147.27 in mid-July.Investors are pricing in slowing crude demand growth from China, whose economy, the world's fourth largest, was once thought to be a counterweight to weakening demand from the U.S. and Europe. U.S. bank Morgan Stanley earlier this week cut its 2009 forecast for Chinese economic growth to 7.5% from 8.2%. The bank expects Asia outside of Japan to grow 5.5% next year, the U.S. economy to shrink 1.3% and Europe to contract 0.6%. Investors have brushed off two recent production cuts by the Organization of Petroleum Exporting Countries, and prices have continued to fall amid talk of a third quota output reduction next month.
Qatar's prime minister, Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, said Tuesday that "fair" oil prices of between $70 to $90 per barrel would ensure that expensive oil exploration could continue and help to avert price spikes in the future.
However this decrease in crude prices does not affect one of Europes oldest economies...Portugal...were prices continue to be one of the highest
in the world, even now as crude prices are at a three year low Portugal continues to have final consumer prices near the record $147.27 in mid-July....Oil consumption in Portugal this year has dropped more than 14% and all tendencies indicate that it will continue and pass the 16% !!! This arrogant attitude by the oil companies (GALP,BP,REPSOL,CEPSA) and government will not be forgotten as Portugal will shortly enter a period of elections for a new government, the population will certainly have the opportunity to elect a new government that will work for the people and not for the oil industry..
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