Swine flu fears affecting oil markets

Following the World Health Organisation (WHO) recently raising its flu alert to Phase 5 signalling a Swine Flu pandemic was "imminent", oil prices around the globe are becoming volatile, particularly in Asian trade.

The increase in the alert status by the World Health Organisation warns that all countries should now activate their pandemic preparedness plans without delay.

This volatility stems from concerns that the spread of Swine Flu could have a negative impact on hopes of an economic recovery of the recession hit US economy.

The market indicator comes from the noticeably bigger than anticipated drop in US Gasoline stockpiles suggesting stronger demand by US businesses and citizens.

With the US being the biggest consumer of gasoline, it is generally acknowledged as a good trend setter/baseline for (and potentially influencing) other global movements.

There are many warning messages being proffered by experts, forecasting a slowdown in progress towards any global economic recovery due to the swine flu pandemic. But the sheer size of the US economies is generally a good indicator, so are worth keeping an eye on if you are trading in such products and/or markets.

Be careful therefore that you make sure you are making trading decisions on an informed basis and not trading entirely on instinct or emotions at this unsteady time.