Further drop

According to thestar.com.my, there's a further drop in oil price, resulting it only US$82 per barrel in Asia.

Compared to US$147.27 on July 11, it has dropped 44% ! I'm guessing it would drop even more, however I didn't expect it to drop THIS fast, it's scary! As we know, it's more demand-focused in oil industry, which indicates that the demand is actually slowing down, if I didn't interprete it wrongly. What would cause demand to slow down? OPEC's decision that was made last month to cut down the production by 520,000 barrels a day also failed to halt the losses. Everyone is worried about global growth, and oil is the front line commodity for that. Panic and fear in the market would cause the demand to drop. The whole market has already lost its confidence in everything. I guess the collapse of Washington Mutual (WaMu) few weeks ago also instils the fears in people.

KLCI today was even worse. According to thestar.com.my, Composite index has fell to more than 28-month low, skidded 30.65 points or 3.16% to 938.24 at midday. Yes, MIDDAY! This is how sensitive investors are to what happened globally. Fear and panic has made investors to lost confidence in stock market, hence the drop in KLCI, which is not a good trend. :/

Although Datuk Seri Najib Tun Razak said "our economy is stable", I seriously doubt it :/