Business | Oil & Gas
Oil falls over $2 on US economy fears
Crude oil fell more than $2 a barrel on forecasts for reduced US consumer spending and on slowing growth of oil imports in China.
- Bloomberg
- Published: 23:23 November 12, 2007
New York: Crude oil fell more than $2 a barrel on forecasts for reduced US consumer spending and on slowing growth of oil imports in China.
Rising fuel costs may have slowed retail spending growth in the US, the world's largest oil user, to a four-month low in October, according to a Bloomberg survey.
Saudi Oil Minister Ali Al Naimi and Kuwait's acting oil minister said that Opec may discuss an output boost, Agence France-Presse reported on Monday.
"There is broad weakness across the commodity markets because of economic concerns,'' said Eric Wittenauer, an energy analyst at AG Edwards & Sons in St. Louis. "The Saudi remark is leading traders to expect another 500,000 barrels of Opec oil in the near future.''
Prices
Crude oil for December delivery fell $2.45, or 2.5 per cent, to $93.87 a barrel at 10.12am on the New York Mercantile Exchange.
Futures climbed to $98.62 on November 7, the highest intraday price since trading began in 1983. Prices are up 58 per cent from a year ago.
Brent crude oil for Dec-ember settlement fell $1.97, or 2.1 per cent, to $91.21 a barrel on the London-based ICE Futures Europe exchange. Brent reached $95.19 a barrel on November 7, the highest since trading began in 1988.
"It looks like the global economy is slowing, which will have an impact on demand,'' said Kyle Cooper, director of research at IAF Advisors in Houston.
"Rising demand has been the main story for years now,'' Cooper said.
China's October oil imports fell to the lowest since February after the summer consumption peak passed and as crude oil prices rose to records. China is the second-biggest oil consumer after the US.
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