(1888PressRelease)
March 25, 2009 - Oil prices eased Tuesday in Asia but stayed above $53 a barrel on hopes that the U.S. government's move to purge ailing banks of up to $1 trillion of toxic assets could speed up economic recovery.
Benchmark crude for May delivery dipped 26 cents to $53.54 a barrel by midday in Singapore on the New York Mercantile Exchange. The contract climbed as high as $54.05 on Monday before settling at $53.80, up $1.73. Oil prices have risen more than 30 percent this month.
"Prices have dropped a bit this morning but remain well above $53, which is a very strong price. The question really is whether this rally is sustainable," said Douglas Morgan, CEO at Hoffman Meyer Associates in Seattle.
The Hoffman Meyer Associates CEO said “Oil and other commodities have rallied in tandem with world stock markets following the U.S. government's recent measures to bail out banks and bolster an economic recovery, but downside risks remain with no signs of oil demand improving.”
"Investors are hoping the U.S. government's plans will boost confidence and turn the economy around," Morgan said. "But it is premature to say the oil market or oil demand has turned the corner. Inventories remain high in many locations and there is still a supply overhang in the oil market. Oil prices still remain vulnerable."
Hoffman Meyer Associates is Seattle's leading merger and acquisition, business brokerage firm. As a mergers & acquisition firm, our principals have completed scores of transactions of privately and publicly held companies during the past 25 years.
Over the years, our firm has developed strong relationships with companies and individuals that are ancillary to the mergers & acquisition process including banks, mezzanine lenders, asset lenders, transaction attorneys, certified public accountants, and financial planners. We are also affiliate members of leading merger & acquisition, business valuation, accounting and brokerage associations.
###
