Related News
Oil down more than 3% on Europe debt concerns
Source: Agencies |
September 10, 2011, Saturday
|
Online Edition
Online Edition
OIL dropped yesterday on growing concerns about Europe's economy.
At the gas pump the national average for a gallon of regular hit US$3.659 yesterday - a record for this time of year. A gallon of gas is nearly 98 cents more than a year ago. Prices range from US$3.43 a gallon in parts of the South to as much as US$4.15 a gallon on the West Coast and in the Midwest, according to AAA, oil Price Information Service and Wright Express.
Benchmark crude fell US$2.95, or 3.3 percent, to US$86.10 per barrel in New York. Brent crude lost US$2.65, or 2.3 percent, at US$111.90 per barrel in London.
Prices fell as the European Central Bank said a top official was leaving unexpectedly. Juergen Stark, the bank's top economist, resigned for personal reasons, but analysts took his departure as a sign of deepening divisions over how to solve Europe's debt crisis.
Europe is a major consumer of diesel fuel, and its economic woes have sent tremors through world markets.
"We're all interconnected," independent analyst Andrew Lipow said. "If the European economy slows down, it'll slow down spending on things that matter in the US, like tourism."
Stocks also lost ground on the news out of the ECB. At midday the Dow Jones industrial average, the S&P 500 index and the Nasdaq composite index were all down more than 2 percent.
The ECB announcement pushed up the dollar, as the euro fell. Oil, which is priced in US currency, tends to fall when the dollar rises and makes oil more expensive for investors holding foreign money.
Analysts also noted that Libya appears ready to start exporting oil again. After seven months of unrest that shut down its petroleum industry, Libya plans to load about 600,000 barrels of crude onto a tanker next week, according to Addison Armstrong, director of market research at Tradition Energy.
That's a tiny amount, compared with the 1.5 million barrels per day that Libya used to export. Still it's a promising sign that Libyan oil could soon be back on world markets.
In other energy trading, heating oil fell 7 cents, or 2.3 percent, to US$2.9720 per gallon and gasoline futures lost 11 cents, or 4 percent, at US$2.7714 per gallon. Natural gas fell 1.5 cents to US$3.965 per 1,000 cubic feet.
At the gas pump the national average for a gallon of regular hit US$3.659 yesterday - a record for this time of year. A gallon of gas is nearly 98 cents more than a year ago. Prices range from US$3.43 a gallon in parts of the South to as much as US$4.15 a gallon on the West Coast and in the Midwest, according to AAA, oil Price Information Service and Wright Express.
Benchmark crude fell US$2.95, or 3.3 percent, to US$86.10 per barrel in New York. Brent crude lost US$2.65, or 2.3 percent, at US$111.90 per barrel in London.
Prices fell as the European Central Bank said a top official was leaving unexpectedly. Juergen Stark, the bank's top economist, resigned for personal reasons, but analysts took his departure as a sign of deepening divisions over how to solve Europe's debt crisis.
Europe is a major consumer of diesel fuel, and its economic woes have sent tremors through world markets.
"We're all interconnected," independent analyst Andrew Lipow said. "If the European economy slows down, it'll slow down spending on things that matter in the US, like tourism."
Stocks also lost ground on the news out of the ECB. At midday the Dow Jones industrial average, the S&P 500 index and the Nasdaq composite index were all down more than 2 percent.
The ECB announcement pushed up the dollar, as the euro fell. Oil, which is priced in US currency, tends to fall when the dollar rises and makes oil more expensive for investors holding foreign money.
Analysts also noted that Libya appears ready to start exporting oil again. After seven months of unrest that shut down its petroleum industry, Libya plans to load about 600,000 barrels of crude onto a tanker next week, according to Addison Armstrong, director of market research at Tradition Energy.
That's a tiny amount, compared with the 1.5 million barrels per day that Libya used to export. Still it's a promising sign that Libyan oil could soon be back on world markets.
In other energy trading, heating oil fell 7 cents, or 2.3 percent, to US$2.9720 per gallon and gasoline futures lost 11 cents, or 4 percent, at US$2.7714 per gallon. Natural gas fell 1.5 cents to US$3.965 per 1,000 cubic feet.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
