Related News
Slump in demand weakens oil
By Christian Schmollinger |
January 3, 2009, Saturday
|
Print Edition
Print Edition
CRUDE oil fell below US$42 a barrel in New York after some traders viewed a rally of 14 percent at the end of last year as excessive amid slumping demand.
Fuel consumption in the United States, the world's biggest economy, fell 3.7 percent in the four weeks ended December 26 from a year earlier, according to the Department of Energy. Oil jumped 14 percent on Wednesday after a report showed US fuel stockpiles climbed less than expected and the conflict between Israel and Hamas raised concern Middle East supplies may be disrupted.
"There was an over-reach to the upside," said Olivier Jakob, managing director of Petromatrix Gmbh in Zug, Switzerland. "The extent of the move was more due to low liquidity, and it being the end of the year" than fundamentals.
Crude oil for February delivery fell as much as US$3.52, or 7.9 percent, to US$41.08 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at US$41.35 a barrel at 9:52am London time.
Oil fell 54 percent in 2008, the first annual decline since 2001 and the biggest drop since futures trading started in 1983.
The February contract rose US$5.57 to US$44.60 a barrel on Wednesday, the highest since December 12.
"That rally on the 31st didn't have too much behind it so we're seeing crude come back to a level more reflective of the fundamentals," said Toby Hassall, an analyst with Commodity Warrants Australia in Sydney. "We still don't have a clear picture of when a global recovery is going to take place."
US stocks last year plunged the most since the Great Depression as financial shares collapsed, energy and metal producers tumbled and the economy suffered a year-long recession.
Oil may rise
The Standard & Poor's GSCI Index of 24 commodity futures lost 47 percent last year, the most since its introduction in 1971. The Reuters/Jefferies CRB Index of 19 raw materials fell 40 percent.
Crude oil may rise next week as the Organization of Petroleum Exporting Countries makes record production reductions to counter the deepest economic slump since World War II.
Seven of 14 analysts surveyed by Bloomberg News, or 50 percent, said futures will gain through Friday. Five analysts, or 36 percent, said oil will fall and two said there will be little price change. Last week, 46 percent of analysts said prices would drop.
Oil had increased 14 percent this week amid political turmoil in the Middle East and Europe.
Fuel consumption in the United States, the world's biggest economy, fell 3.7 percent in the four weeks ended December 26 from a year earlier, according to the Department of Energy. Oil jumped 14 percent on Wednesday after a report showed US fuel stockpiles climbed less than expected and the conflict between Israel and Hamas raised concern Middle East supplies may be disrupted.
"There was an over-reach to the upside," said Olivier Jakob, managing director of Petromatrix Gmbh in Zug, Switzerland. "The extent of the move was more due to low liquidity, and it being the end of the year" than fundamentals.
Crude oil for February delivery fell as much as US$3.52, or 7.9 percent, to US$41.08 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at US$41.35 a barrel at 9:52am London time.
Oil fell 54 percent in 2008, the first annual decline since 2001 and the biggest drop since futures trading started in 1983.
The February contract rose US$5.57 to US$44.60 a barrel on Wednesday, the highest since December 12.
"That rally on the 31st didn't have too much behind it so we're seeing crude come back to a level more reflective of the fundamentals," said Toby Hassall, an analyst with Commodity Warrants Australia in Sydney. "We still don't have a clear picture of when a global recovery is going to take place."
US stocks last year plunged the most since the Great Depression as financial shares collapsed, energy and metal producers tumbled and the economy suffered a year-long recession.
Oil may rise
The Standard & Poor's GSCI Index of 24 commodity futures lost 47 percent last year, the most since its introduction in 1971. The Reuters/Jefferies CRB Index of 19 raw materials fell 40 percent.
Crude oil may rise next week as the Organization of Petroleum Exporting Countries makes record production reductions to counter the deepest economic slump since World War II.
Seven of 14 analysts surveyed by Bloomberg News, or 50 percent, said futures will gain through Friday. Five analysts, or 36 percent, said oil will fall and two said there will be little price change. Last week, 46 percent of analysts said prices would drop.
Oil had increased 14 percent this week amid political turmoil in the Middle East and Europe.
- 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.
