As Hurricane Gustav have passed Gulf Coast with out major damage to the oil drilling facilities oil prices have fallen. Through there was no major damage in this crisis, one can see in this article at http://www.nytimes.com/aponline/business/AP-Oil-Prices.html?_r=1&ref=business&oref=slogin
that even a major Economic country like the United States could be hit hard by natural disaster.
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With the information that the oil drilling facilities held up through the hurricane it gave investors great hope with the Dow rising by about 170 points today. Since oil prices have influenced the stock market greatly over the past few months, news of the oil prices falling will continue to help the stock market rebound from the last few months of what seemed to be constant falling prices.
This is very interesting that David mentioned that the influence of falling oil prices on the stock market will help the stock market "rebound from the last few months of what seemed to be constant falling prices." I read in the Economic Times on the 27th of this month that OPEC is pumping almost one million barrels per day more oil than the target because of an increase in production from Saudi Arabia. Thus, Saudi Arabia may come under pressure from OPEC ranks to reduce supplies to prevent a further fall in crude oil prices. However, Saudi Arabia is likely to stop short of cutting its supply because fuel demand rises in the fourth quarter due to winter and a move to cut short supplies may annoy consumer nations. With Saudi Arabia producing 2 in every five barrels and refusing to cut down supplies may be we can hope for prices to at least stay at what they currently are if not fall further. This in turn may then help the stock markets bounce back as David mentioned in his comment.
I am sorry, I meant I read this in The Economic Times on the 27th of August.
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