Related News
Oil falls to lowest level since July
Source: Agencies |
November 8, 2012, Thursday
|
Online Edition
Online Edition
THE price of oil tumbled nearly 5 percent yesterday, its biggest decline of the year, as traders shifted their focus back to the struggles of the global economy.
Benchmark oil fell US$4.27 to finish at US$84.44 per barrel in New York. It was the lowest price since July 10.
Hours after President Barack Obama won re-election, concerns about global economic growth re-emerged to dominate the oil market.
European leaders offered more warnings about the region's economy, which has been saddled with a debt crisis for more than three years.
The European Union's executive arm predicted economic growth across the 27-country region would shrink 0.3 percent this year. In the 17 countries that use the euro, growth was expected to contract 0.4 percent. Unemployment is predicted to remain high into 2014.
That could further weaken oil demand in the region. According to the Energy Department, oil consumption in Europe fell to 14.1 million barrels per day in the third quarter from 14.7 million a year earlier.
In the US the focus is turning to a package of tax increases and spending cuts known as the "fiscal cliff" that will take effect unless Congress acts by Jan. 1. Economists are warning of another recession if Congress and the Obama administration can't strike a deal.
Meanwhile, the government reported another increase in supply last week, reminding traders that crude inventories are nearly 11 percent above year-ago levels while demand remains anemic.
"I think that right now, the economic uncertainty that has probably been a real dominant factor in the market in the past six months is still here," Tradition Energy oil analyst Gene McGillian said.
He predicted that the price of benchmark oil would make small moves until there is a better idea of whether the US will tackle its budget issues.
"I just don't think you're looking for a significant sell-off from these levels unless we see signs that the US economy is really dropping back into recession And right now, that doesn't seem like that's in the cards," he said.
Meanwhile, the national average price for gasoline remained at US$3.46 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That's nearly 36 cents less than it was a month ago but still about 6 cents higher than a year ago on this date.
Most analysts say motorists should continue to see prices drift lower through at least Thanksgiving.
In other trading, Brent crude fell US$4.25, or 3.8 percent, to finish at US$106.82 per barrel in London.
Other futures also fell in New York trading:
- Wholesale gasoline dropped 11 cents, or 4.1 percent, to end at US$2.5889 per gallon.
- Heating oil dropped 9.08 cents, or 3 percent, to finish at US$2.9621 per gallon.
- Natural gas dropped 3.9 cents to end at US$3.578 per 1,000 cubic feet.
Benchmark oil fell US$4.27 to finish at US$84.44 per barrel in New York. It was the lowest price since July 10.
Hours after President Barack Obama won re-election, concerns about global economic growth re-emerged to dominate the oil market.
European leaders offered more warnings about the region's economy, which has been saddled with a debt crisis for more than three years.
The European Union's executive arm predicted economic growth across the 27-country region would shrink 0.3 percent this year. In the 17 countries that use the euro, growth was expected to contract 0.4 percent. Unemployment is predicted to remain high into 2014.
That could further weaken oil demand in the region. According to the Energy Department, oil consumption in Europe fell to 14.1 million barrels per day in the third quarter from 14.7 million a year earlier.
In the US the focus is turning to a package of tax increases and spending cuts known as the "fiscal cliff" that will take effect unless Congress acts by Jan. 1. Economists are warning of another recession if Congress and the Obama administration can't strike a deal.
Meanwhile, the government reported another increase in supply last week, reminding traders that crude inventories are nearly 11 percent above year-ago levels while demand remains anemic.
"I think that right now, the economic uncertainty that has probably been a real dominant factor in the market in the past six months is still here," Tradition Energy oil analyst Gene McGillian said.
He predicted that the price of benchmark oil would make small moves until there is a better idea of whether the US will tackle its budget issues.
"I just don't think you're looking for a significant sell-off from these levels unless we see signs that the US economy is really dropping back into recession And right now, that doesn't seem like that's in the cards," he said.
Meanwhile, the national average price for gasoline remained at US$3.46 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That's nearly 36 cents less than it was a month ago but still about 6 cents higher than a year ago on this date.
Most analysts say motorists should continue to see prices drift lower through at least Thanksgiving.
In other trading, Brent crude fell US$4.25, or 3.8 percent, to finish at US$106.82 per barrel in London.
Other futures also fell in New York trading:
- Wholesale gasoline dropped 11 cents, or 4.1 percent, to end at US$2.5889 per gallon.
- Heating oil dropped 9.08 cents, or 3 percent, to finish at US$2.9621 per gallon.
- Natural gas dropped 3.9 cents to end at US$3.578 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.
