Oil price fell in New York, heading for biggest weekly decline in three months and remove the profit for the year, the demand for fuel speculation will falter due to a weakening U.S. economy and worsening debt crisis of Europe.
Consumer Confidence Declines Make Oil Price Down
Quoting Bloomberg, oil futures fell as much as 1.1 percent after falling 5.8 percent yesterday.the confidence of U.S. consumer slid to its lowest level in more than two months, the report showed. Italian and Spanish bonds rose to a record amid speculation Europe will fail to address the debt crisis of the European Union.
Labor Department data today showed the U.S. might fail to create sufficient jobs in July to reduce unemployment. “Market jitters hit, people panic,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney, which predicts oil price in New York will reach $ 100 a barrel this year. “Everyone liquidate and move to cash and that’s understandable because every other commodity markets are under pressure.”
List of Oil Price, Dominated by Decreasing
Crude oil for September delivery fell as much as 95 cents to $ 85.68 a barrel in electronic trading on the New York Mercantile Exchange at 11:38 am Sydney time. The contract yesterday dropped $ 5.30 to $ 86.63, the lowest since February 18. Prices fell 10 percent for the week and 6 percent in 2011.
Brent oil for September delivery fell 35 cents, or 0.3 percent, to $ 106.90 a barrel on the ICE Futures Europe based in London. Europe’s benchmark, the contract with a premium $ 21.23 for U.S. futures, compared to almost to a record $ 22.67 on August 2.
“Concerns in the U.S. economy raised concerns that oil price demand will soften dramatically,” said Peter Beutel, president of Cameron Hanover Inc., an adviser to the energy in New Canaan, Connecticut, in a note e-mail today. “Traders hit by fears that the global economy is slowing, the state and the saving embrace the euro zone debt crisis spreading.” – oil price
