Related News
Oil drops below US$92 on gloomy economic outlook
Source: Agencies |
September 25, 2012, Tuesday
|
Online Edition
Online Edition
WORRIES about weaker economic growth dragged down oil prices yesterday.
Oil has now fallen five of the last six trading days. It fell more than 6 percent last week.
Benchmark crude fell 96 cents, or 1 percent, to finish at US$91.93 a barrel on the New York Mercantile Exchange. Prices for other petroleum products dropped, too.
In London, Brent crude dropped US$1.61 at US$109.81 a barrel on the ICE Futures exchange.
Germany delivered the latest dose of gloomy economic news, with its Ifo index of business confidence falling for the fifth month in a row. Germany is an economic powerhouse, but 43 percent of its exports go to its euro partners. And growth is stalling across the other 16 countries in the eurozone.
Slower economies mean less demand for oil, pushing prices down.
Phil Flynn, a senior market analyst for Price Futures Group, said he's surprised prices haven't fallen further. He said one reason could be that commodity funds have not been bailing out of oil.
Still, oil prices have been under pressure from worries about Europe. The dollar has been stronger, which makes oil cheaper for holders of other currencies.
"You're seeing demand destruction around the globe," he said. "You've got Saudi Arabia saying they're going to pump oil until the cows come home." All of that drives down oil prices, he said.
In other energy futures trading on the New York Mercantile Exchange:
- Natural gas fell 4.8 cents to settle at US$2.837 per 1,000 cubic feet.
- Heating oil fell 2.2 cents to US$3.0987 per gallon.
- Wholesale gasoline fell 2.49 cents to US$2.9176 per gallon.
Oil has now fallen five of the last six trading days. It fell more than 6 percent last week.
Benchmark crude fell 96 cents, or 1 percent, to finish at US$91.93 a barrel on the New York Mercantile Exchange. Prices for other petroleum products dropped, too.
In London, Brent crude dropped US$1.61 at US$109.81 a barrel on the ICE Futures exchange.
Germany delivered the latest dose of gloomy economic news, with its Ifo index of business confidence falling for the fifth month in a row. Germany is an economic powerhouse, but 43 percent of its exports go to its euro partners. And growth is stalling across the other 16 countries in the eurozone.
Slower economies mean less demand for oil, pushing prices down.
Phil Flynn, a senior market analyst for Price Futures Group, said he's surprised prices haven't fallen further. He said one reason could be that commodity funds have not been bailing out of oil.
Still, oil prices have been under pressure from worries about Europe. The dollar has been stronger, which makes oil cheaper for holders of other currencies.
"You're seeing demand destruction around the globe," he said. "You've got Saudi Arabia saying they're going to pump oil until the cows come home." All of that drives down oil prices, he said.
In other energy futures trading on the New York Mercantile Exchange:
- Natural gas fell 4.8 cents to settle at US$2.837 per 1,000 cubic feet.
- Heating oil fell 2.2 cents to US$3.0987 per gallon.
- Wholesale gasoline fell 2.49 cents to US$2.9176 per gallon.
- 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.
