The American share market had it zapped again last night, down another 200 points. This is an extension of another 200 points drop the night before. Reason? Oil Price! Crude oil rose to a record above $135 a barrel in after- hours trading on the New York ME on concern that supplies are inadequate.
The ASX? After a modest lost yesterday, actually it managed to stay on a green side today.
Australia is on the exporting side of oil and gas. Oil is Australia's fifth largest export. Not to forget other Australian alternative energy such as gas, coal and geothermal.
So, what is a record oil price mean?
Well, it depends where you are, I guess. For America, it might mean disaster, recession, inflation, and other not so nice attribute. For Australia, it means higher earning for our oil and energy company ( and of course a higher oil price that might pinch businesses and household hard). Still, it might worth it to invest in some australian energy company now. For short term at least.
Another side of a coin.
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