World oil prices and the economy in the world in general has shaken in the aftermath of the Japanese Earthquake. Australian stocks lost 4.5% in one week, signalling the end of its worst week since May last year. Meanwhile the Japanese Nikkei dropped 1.7% as the Japanese Government pledged financial stability after this earthquake.
Around the world the price of oil has continued to rise hitting US $100 a barrel, and Japanese oil exporters JX Nippon have closed due to the earthquake and resulting tsunami, and their three plants produce 600 000 barrels of oil a day, providing even more pressure on the market that has had trouble in the Middle East currently.
Meanwhile the S&P 500, Bloomberg Europe 500, MSCI Asia Pacific Index have all fallen due to the earthquake.
In Commerce we have discovered that the economy is influenced by overseas pressures that have introduced recessions over the years that had not been begun on Australian shores. In this case oil is one pressure that is driving up prices in Australia and around the world, and combined with the earthquake in Japan it would mean that prices would continue to rise.
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