Friday, March 11, 2011

Massive earthquake in Japan Sends oil prices significantly lower - 11th Mar 2011

Most all assets are starting the last day of trading for the week on the defensive after another round of bearish news including a horrific earthquake and tsunami hitting Japan. The day of rage protests in Saudi Arabia have yet to materialize but it is still being watched closely by the market. The most devastating of all the news overnight is the 8.9 magnitude earthquake and accompanying tsunami. This is the seventh largest recorded earthquake and a horrific event.....

With Japan at a standstill and refineries shut down the demand for crude oil for Japan is going to decline quickly taking away some of the sting from the loss of Libyan crude oil. Japan consumes about 4.4 million barrels per day of crude oil with about 99% of it imported from a variety of sources. At least for the short term (not sure what the short term actually means as of yet as damage assessment continues) Japan is going to import less crude oil. Read More