Peter Shishkov- ISP

19 06 2011

New Journal:

Are we moving out tomorrow or not?

Marked Journals:

Is the world better off or worse off because of Wal-Mart?

Debt and Inflation

Marijuana: to be legalized or not?

Should students be paid for their work?

Four comments to be marked:

1st

2nd

3rd

4th

Six other comments:

5th

6th

7th

8th

9th

10th





Commodity prices rise amid economic turbulence

1 06 2011

Article can be found here

Key points:

– Lately, oil price is extremely volatile due to disappointing economic data from the US and eurozone, uncertainty about a potential debt-restructure in Greece and weaker oil demand from the US, China and Japan.

-Gasoline demand is expected however to pick up in the coming weeks as Americans take to the road for their summer holidays.

-On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for July climbed to $100.35 a barrel from $97.41.

-Gold and Silver remain to be the safest investments during problematic economic times. As a result the precious metals have increased in price: on the London Bullion Market, gold jumped to $1,533 an ounce from $1,491 the previous week; Silver rose to $37.69 an ounce from $34.80.

-Chinese manufacturing eased to a 10-month low point in May, HSBC bank data showed, fuelling fears of a slowdown in the world’s number two economy.

-Prices picked up sharply on as US banks Goldman Sachs and Morgan Stanley raised their 2012 forecasts for Brent to around $130 a barrel.

-Economists said the data showed consumer spending was weaker than previously believed, with the high cost of food and fuel likely the reason.

Discussion questions:

1) Why do Goldman Sachs and Morgan Stanley predict that oil will be so expensive again? Is it a new rapid recovery or just an uncertainty and consequences of Arabic World instability?

2) What are other factors that can affect commodity prices this year? Make a brief forecast, according to the current conditions.