Oil slips on demand slowdown concerns
China's weak industrial data and trading losses by JPMorgan have hurt investor confidence
New York: Oil prices fell yesterday as Greece's inability to form a government and worries about a slowing Chinese economy fed concern about the outlook for petroleum demand.
The price slump extended this month's slump for oil. In the two weeks ended Friday, Brent crude was down 6.2 per cent and US crude was off 8.4 per cent. Oil prices ended the week on Friday under pressure from data showing China's industrial production in April grew at its slowest pace in nearly three years.
"The situation in Greece, hitting the euro, comes after last week's China data showing growth is slowing and the trading losses by JPMorgan have hurt confidence," said Phil Flynn, analyst at PFGBest Research in Chicago.
Brent crude fell $1.40 (Dh5.10) to $110.86 a barrel (1540 GMT), having slumped to $110.04, the lowest intraday price since January 25, the last time Brent prices were below the $110 level.
The Brent June contract expires tomorrow.
US crude was down $1.50 at $94.63 after sliding to $93.65, a 2012 low and weakest intraday price since December 19.
