Oil and gas prices continue to freefall February 7
by, 02-08-2011 at 03:54 AM (817 Views)
Oil and gas prices continue to freefall February 7 - Trading Energy
The second week of February started with falls in major oil and gas prices.
Lets quickly review the changes in major energy commodities market and precious metals for February 7th:
Oil price (WTI spot) fell for the third straight business day, yesterday it declined by 1.74% as it settled on 87.48 $/b.
Brent price declined by only 0.51%, to settle on 99.12$/b.
Up to now, during February the WTI spot prices declined by 2.3%, while Brent declined by only 1.3%.
As a result, the spread between the WTI and Brent prices has widen a bit and its currently 11.64$/b (for more about figuring out the spread between WTI and Brent oil see here).
Apparently, the Egyptian turmoil effect on oil market has subsided for now, as the oil price doesnt react to the current news in Egypt, despite the situation there hasnt resolved it self. Thus it seems that oil prices already incorporated the rise in the uncertainty in the Middle East (for more on the Egyptian turmoil and its effect on crude oil price, see here).