Oil slides to near $67 on grim World Bank forecast

Oil prices slid to near $67 a barrel Tuesday on expectations of weak demand after the World Bank forecast a deeper global recession this year.

Sharp declines in Asian stock markets Tuesday, coming after a drop on Wall Street on Monday, added to selling pressure.

Benchmark crude for August delivery fell 43 cents to $67.07 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. On Monday, it dropped $2.52 to settle at $67.50.

The July contract, which expired Monday, dropped $2.62 to settle at $66.93 a barrel.

A drop from an eight-month intraday high of $73.23 earlier this month accelerated after the World Bank said it expected the global economy to shrink by 2.9 percent this year, much worse than its March prediction for a contraction of 1.7 percent.

The bank also lowered its 2010 growth forecast to 1.7 percent from 2 percent.

The World Bank’s more pessimistic outlook helped puncture the growing market sentiment that massive global fiscal stimulus could spark growth by the end of the year.

Benchmark stock indices in Japan, Hong Kong and South Korea tumbled nearly 3 percent Tuesday. On Monday in New York, the Dow Jones industrial average fell 2.4 percent on Monday after a 3 percent drop last week.

“Financial markets were expecting a quicker recovery, so for the World Bank to make such a large revision down surprised people,” said Ben Westmore, an energy analyst with National Australia Bank in Melbourne.

Investor expectations of growing crude demand from developing economies will likely keep prices from falling below $60 a barrel, Westmore said.

In other Nymex trading, gasoline for July delivery fell 0.58 cent to $1.85 a gallon and heating oil was steady at $1.73. Natural gas for July delivery was steady at $3.94 per 1,000 cubic feet.

In London, Brent prices fell 41 cents to $66.57 a barrel on the ICE Futures exchange.

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Leasing A Florida Commercial Real Estate

Renting a commercial property that caters your business needs is one of the biggest overhead costs that your business incurs. Since there is not standard lease, you certainly need to be lease savvy and acquire some basic knowledge about the subject of leasing. Before you finally sign the lease contract for Florida commercial real estate property, try to immerse a number of practical suggestions.
If you are a first time entrepreneur there are several things that you have to be familiar. You have to understand the legality of the lease contract. Once you sign a contract, you just cannot break the agreement at will or simply adjust the terms according to your company’s needs. So before finalizing the lease contract for Florida commercial real estate property you have to make sure to ask some questions regarding the property.

You have to determine the time you intend to lease the property. You have to give an estimated time of leasing a property. Majority of the short term lease last for a bout 5 years while long termed lease is valid up to 10 years.

Committing contravene on lease agreement of Florida commercial real estate contract may result in severe consequences. You can be denied access with the property, lose your deposit or be sued. You have to make sure that you are staying straight forward in the period predetermined in the contract.

In buying a commercial real estate property, it will be better if you are going to hire a real estate agent that has highly regarded record in the industry. It is definitely acceptable to inquire about the professional certifications. Definitely the experience ids the best gauge in assessing the competence of a broker or you may hire those real estate agents from a well-known real estate organizations prove that the agent has taken extra mile.

Try to bargain your way to have the best lease contract in Florida commercial real estate property. Here are some of the helpful guidelines that you can use.

Take advantage of the “permitted use of the premises” clause. – A commercial real estate lease usually includes a section that lays down this particular stipulation. You have to make use of this clause as wide as possible since your business might expand.

Reach a favorable deal for a lease term – Most of the time the landlords of Florida commercial real estate are prepared to make allowances for long term leases. Instead of settling on a fixed number of years, make an effort of negotiating a short term lease that has renewal options.

Source: Florida Commercial Real Estate

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