Crude Oil Prices – U.S. crude oil prices fell in trading Monday (1 / 8). The market responded negatively manufacturing index decreased in July,so create doubts about the prospects of energy demand.
US Oil Prices Going Down
Light sweet crude oil prices fell 85 cents to $ 94.89 a barrel on the New York Mercantile Exchange (NYMEX). This level is the lowest close since late June. Meanwhile Brent crude oil prices for September delivery rose 7 cents to $ 116.81 a barrel, although it had touched the level of U.S. $ 120 on Monday morning.
Brent oil rises because of pipeline disruption and platforms maintenance in the northern areas that affect the supply to Europe this weekend. BP said the pipeline system disruption in the North Sea Forties will be closed for five days this weekend. This was after workers found the explosives from World War II unexploded been found near the pipeline.
While the Total would close refineries in the region which produces 104,000 barrels per day. “Many problems in the northern region in particular Forties which supporting the increase in Brent ,” said Director of BNP Paribas Commodity Futures, Tom Brentz quoted from yahoofinance.com.
Republican and Democratic leaders on Sunday night agreed to terms of deficit reduction plan that will avoid a U.S. default and increase the U.S. debt ceiling. “But the initial euphoria the debt agreement has reduced. There is still much uncertainty surrounding the debt agreements in the U.S. Congress,” said an analyst with Tradition Energy, Gene McGillian.
Euphoria subsided also pushed Wall Street closed lower after trading higher earlier. The weakening as a further in six trading days.
Other Index Tend Down
While the index of manufacturing data for July, fell to 50.9 from 55.3. These data under the previous expectation at 54.9. A reading below 50 means contraction in the manufacturing sector.
For new orders data index fell to 49.2 from 51.6. For construction spending rose 0.2% to U.S. $ 772.32 billion.
The dollar gained against the yen, up 0.7% to 77.29, while the dollar index was flat at 73.75. Gold, which has risen sharply amid U.S. concerns in electronic commerce. December gold contract slipped U.S. $ 13.50 to U.S. $ 1617.70 per ounce. – Crude Oil Prices
