Oil prices continue to fall after more than $3 drop yesterday

Asian markets have seen the oil prices continuing the fall from yesterday of more than $3 as worries that Asian countries are starting to feel the increased pressure of oil prices. The smaller Asian countries have begun to cut subsidies and India is believed to be thinking about increasing prices. The effect of higher oil prises could start to affect the Asian booming economies, increasing the worries of lower production. China is still heavily subsidizing oil and is not expected to cut on subsidizes until after the summer Olympics.

Increased consumer awareness has also shown that high oil prices have begun to have an affect on the general population. Truckers protesting in London as well as protests of French fishermen, have made it clear that the tolerance towards the oil prices is low. Worries in the US have also started to affect consumer behavior with less demand for oil, even though the main traveling season is starting. Consumers seem to be holding back when it comes to oil usage.

These lower prices for oil are seen despite the fact that the dollar is still weak. But with low consumer confidence in the US, the lowest since 1992 and European countries like the UK and France, the high prices are seen to be unsupported and have start to affect the demand for oil. If OPEC and other analysts are correct in claiming these prices to be speculative driven, rather than based on real supply and demand factors, there might be some correction occurring in the oil prices as speculators might close out their positions.