Despite the Japan earthquake and Hawaii’s tsunami, Fox News and USA Today reported that the Dow Jones Industrial Averages edged north, while oil prices dipped below $100.
However, until the certainty of the Middle Eastern crisis and Japan’s future look is measurable, it’s too early to determine an economic outlook.
On Thursday, stocks fell sharply based on dismal economic news coming out of China, a main importer of goods used in the United States for consumption.
The news on yesterday caused a sharp decline in the Dow Jones. It was one of largest since August 11, 2010. However, today’s oil futures and U.S. stocks recorded a moment of reprieve in the wake of the Japan earthquake and Hawaii tsunami, saysÂ Fox News.
USA Today reports that energy stocks were the main benefactors of today’s tragic incident involving the Hawaii tsunami and Japan earthquake.
While stocks saw modest gains, crude oil declined $1.67 and settled at $101.02 per barrel. Oil prices for the first time this month fell below $100, the magic consumer confidence marker, reports both Fox News and USA Today.
Japan is the world’s third largest consumer of petroleum products. As such, a sharp decline in demand will be realized in the coming weeks, perhaps months, due to the heavily damaged and destroyed roads and infrastructure.
Because the basic laws of supply and demand are at play, pain at the pump may not be so painful after all, at least for the short term, according to Fox News.
Image credit: The Telegraph