Oil prices slips again..

Oil prices have been steadily decreasing since the stat of the recession. Few months back the oil price per barrel was around $150 but now it has almost halved its prices. Latest update on the oil prices is that now it is been slipped below $58 a barrel. The prime reason for this slip is attributed to the signs of economic weakness in the U.S. and Europe.

Oil recently rose above $60 a barrel on optimism that the worst of the U.S. recession was over, but dismal news this week on retail sales, unemployment and housing have traders reconsidering their outlook.

Its very similar in Europe. According to European data the prices rose a bit satisfying the investors but this week it is back to its decreasing phase as it showed the euro zone economy shrank by a massive 2.5 percent in the first quarter.
The varying oil prices definitely hits the economy of many countries. And generally traders like to stock up the oil during these times and may go for trade when the price rose. US Government indicated that stocking up of oil will not be permitted and those who disobeys may face legal actions.

Meanwhile the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries already cut demand expectations this week.