Worsening Outlook

The macroeconomic data continues to indicate a deceleration of economic growth both in Europe and the US.

Crude oil for October delivery fell $1.91, or 2.2 percent, to $87.02 a barrel at 12:52 p.m. on the New York Exchange. Brent oil for October settlement dropped $1.10, or 1 percent, to $113.19 a barrel on the London-based ICE Futures Europe exchange.

This underscores why we’re looking for the outlook to get more bearish a slowdown hasn’t been priced in yet, so oil should move lower.

on fears that one or more of the countries in the euro zone will default triggered a plunge in stocks last month that caused consumer confidence to sink, this will be reflected in lower fuel demand.

All this seems not to affect one of Europe’s oldest and worst economies..PORTUGAL

Portugal has one of the world’s most expensive consumer price for petrol and now they once more announced in the local media that consumer prices for petrol will once more be inflated next week by a staggering 3.5 cents per liter for regular 95 Octane prices will 1.605 € per liter.

This attitude by the petrol companies Galp, BP, Repsol and Cepsa will affect Portugal’s austerity plan, as consumer demand will continue to drop as well as Tax revenue derived from petrol products.
The policy shift by the U.S. and some European Nations to try and get external markets t o help lower crude prices does not apply to Portugal were consumer prices are inflated to record cost.

The new elected government seems to be as arrogant as the last socialist government regarding this issue as there is no control as to the steps taken by these energy companies.