It is not surprising that now there are indications that high oil prices put pressure on demand. On Tuesday, OPEC has reduced global consumption forecast for 2011, Saudi Arabia announced that production decreases because of declining demand. The fact that high oil prices are causing harm to anyone not a secret, especially for those who pay exorbitant prices for gasoline and diesel, as it happens here in Britain. In countries with developed economies, where wage growth is minimal these days, a significant reduction in purchasing power due to rising oil prices act as growth of the tax burden to consumers. Since late last week, WTI has fallen to $ 6 a barrel to $ 121 and would not be surprising if we encounter a further fall in the coming weeks, as a further evidence of weakening demand. In terms of implications for the market Forex, it may temper the demand for currencies like the Aussie vysokobetovye and the currencies of major oil exporters, such as NOK.
Translate this page
