Oil is trading at $83 a barrel as of Monday morning, down more than $3 a barrel since Friday’s news of the country’s credit rating being downgraded.
Forbes reports that the nation’s credit score, lowered for the first time in history, has investors worried the move will stifle an already slow economic recovery.
And though the credit rating brings fear of another U.S. recession, some investment firms are encouraging crude investments and say the world economy will grow enough to encourage oil trading:
Crude traders often look to stock prices as a barometer of overall investor confidence, and oil prices were swept down Monday by a major sell-off across Asian stock markets, followed by falling indices in Europe, as well.
“Further losses can be expected in the near term, as financial investors should reduce risk positions on the back of high risk aversion and the uncertain economic outlook,” said analysts at Commerzbank in Frankfurt.
Despite growing fears of a recession in the U.S., some analysts expect global economic growth to remain robust, supporting oil prices.
“We maintain that commodity markets will continue to tighten as long as global economic growth remains broadly positive and the emerging market economies in particular continue to perform,” Goldman Sachs said in a report. “We expect that the market will continue to tighten to critical levels by 2012, pushing oil prices substantially higher to restrain demand.”
Read more here.
Thursday’s explosion aboard an oil production platform in the Gulf of Mexico is now under investigation by the Bureau of Safety and Environmental Enforcement.
Money from the first and only settlement so far in a Louisiana flood board's lawsuit against dozens of energy companies will be placed in a special account dedicated to coastal restoration.
BP is heading to a federal appeals court in its effort to oust the administrator of damage settlement claims arising from the 2010 Gulf of Mexico oil spill.
The 59-41 Senate vote was one shy short of the 60 needed to clear the House-passed measure.
Spot bonuses to employees who go above and beyond on projects one of several reasons national mag calls BR-based biz bank a cool place to work.
The Director Search Committee interviewed the five men still in the running via video last week and is set to trim the field this week.
Telecom’s decision to halt deployment to more than 100 cities while it awaits net-neutrality rules appears to be little more than a temper tantrum.
Environmental (and political) junkies got a double fix when The Lens hosted a discussion between its environmental writer and the lead attorney in the levee board suit.
Follow The IND to hear Lens environmental reporter Bob Marshall's interview with Gladstone Jones, the lead attorney in the lawsuit against the oil and gas companies for coastal damages.
The $35B deal leaves the burning question about what it will mean for the thousands of these two service giants' local employees.
Broussard & David set up shop at the corner of Jefferson and Vermilion.
in light of falling oil prices, Forbes asks, “Will there be more?”
Lake Charles lets Acadiana companies in on the action as our neighbor to the west prepares for unprecedented growth.
A new study analyzes the state of the Lake Charles region and the impact 19 industrial projects will have on residents.
A U.S. magistrate judge calls “garbage” on behavior of attorneys for Progressive Waste Solutions.
The Lafayette food truck scene is slowing down but not stopping.
Lake-area financial institutions seeing green.
As the Lake Charles region ramps up for record-setting growth, ABiz lays out the challenges and opportunities ahead for South Louisiana.
Who was hired and promoted in Acadiana business?
Louisiana’s Ragin’ Cajuns are driving innovation in Louisiana.
The boom is coming, and McNeese is ready for it.
It’s time for Lafayette and Lake Charles to embrace “coopertition.”
We can make Acadiana — in reality and reputation — the best place in the South for a great career in an idyllic family environment.
Lake Charles’ technical community college wasted no time developing programs to prepare the area’s workforce.
With the help of WISE grant funding, SLCC is poised to help meet the region’s exploding demand for skilled workers.