U.S. Consumer Confidence Declined Again in May 2012

The U.S consumer confidence index fell again during May, after this index has slightly declined during April.

According to the recent U.S. consumer confidence survey, the consumer confidence index declined again in May compared with April’s index: The index reached in May 64.9 (1985=100) a decrease of 3.8 percent points from 68.7 in April. American consumers’ short term outlook in U.S. business conditions has were also more pessimistic in May than a month earlier. On the other hand, the consumers’ assessment of current business and labor conditions has also deteriorated during the month.

Note, this report was based on a survey conducted up to May 16th. In the past couple of weeks the situation seems to slightly improve in the financial markets, (e.g. the American stock markets indexes didn’t fall as much as during the first couple of weeks of May).

This consumer confidence index might be among the factors to drag down natural gas prices: according to a study, there was a positive significant correlation between the “consumer confidence” news and natural gas prices i.e. this news has a strong and positive relation with natural gas prices. Furthermore, the study also suggested a positive significant coefficient between this news and oil prices.

In this case, since the recent consumer confidence index declined, this means this news might have an adverse effect on energy prices including oil and natural gas prices (at best).

Today when this consumer confidence survey was published, the U.S stock markets increased including the DOW, NASDAQ and S&P500. On the other hand natural gas and oil prices declined.

Current Nymex oil WTI, short term futures (June 2012 delivery) is traded at $90.75 per t oz. a $0.11 decrease or 0.12%, as of 20:14*.

Current Nymex Henry Hub, short term futures (June 2012 delivery) is traded at $2.43 per t oz. a $0.14 decrease or 5.41%, as of 20:14*.

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