Oil prices fall slightly again
Friday, 7 November 2008
LONDON, Nov 6 (AFP): Oil prices fell slightly Thursday, a day after sharp losses, as the market digests fresh evidence of slowing world energy demand.
Brent North Sea crude for December delivery dropped 36 cents to 61.51 dollars a barrel on London's InterContinental Exchange (ICE).
On the New York Mercantile Exchange (NYMEX), light sweet crude for December slipped 42 cents to 64.88 dollars a barrel.
Oil prices tumbled more than five dollars Wednesday on the NYMEX as official US data showed demand falling in the United States, the world's biggest energy consuming nation, highlighting worries about the slowing global economy.
Crude futures have tumbled in recent months as a global economic slowdown dampens demand for energy worldwide.
Oil prices have more than halved in value since reaching record highs above 147 dollars a barrel in July, when fears of supply disruptions had sent them rocketing.
But the International Energy Agency said it expected the price of oil to rebound above 100 dollars a barrel and eventually reach 200 dollars by 2030, in a report on the global energy outlook.
A decline in oil prices gained momentum on Wednesday as the US Department of Energy (DoE) reported US gasoline stockpiles had jumped by 1.1 million barrels last week, confounding market expectations for a drop of 600,000 barrels.
The DoE said that crude reserves held steady instead of rising the 1.2 million barrels forecast by analysts.
US energy demand continued to decline. Americans consumed 6.7 per cent less crude in the past four weeks compared with the same period a year ago, the government data showed.
In a volatile week's trading, oil prices had soared six dollars on Tuesday to above 70 dollars in New York as the US currency weakened against the euro and on evidence that OPEC crude exporters were cutting production as promised, analysts said.
The Organisation of the Petroleum Exporting Countries (OPEC), which pumps about 40 per cent of the world's oil, said it would cut output by 1.5 million barrels per day from November 1 to counter falling prices.
Brent North Sea crude for December delivery dropped 36 cents to 61.51 dollars a barrel on London's InterContinental Exchange (ICE).
On the New York Mercantile Exchange (NYMEX), light sweet crude for December slipped 42 cents to 64.88 dollars a barrel.
Oil prices tumbled more than five dollars Wednesday on the NYMEX as official US data showed demand falling in the United States, the world's biggest energy consuming nation, highlighting worries about the slowing global economy.
Crude futures have tumbled in recent months as a global economic slowdown dampens demand for energy worldwide.
Oil prices have more than halved in value since reaching record highs above 147 dollars a barrel in July, when fears of supply disruptions had sent them rocketing.
But the International Energy Agency said it expected the price of oil to rebound above 100 dollars a barrel and eventually reach 200 dollars by 2030, in a report on the global energy outlook.
A decline in oil prices gained momentum on Wednesday as the US Department of Energy (DoE) reported US gasoline stockpiles had jumped by 1.1 million barrels last week, confounding market expectations for a drop of 600,000 barrels.
The DoE said that crude reserves held steady instead of rising the 1.2 million barrels forecast by analysts.
US energy demand continued to decline. Americans consumed 6.7 per cent less crude in the past four weeks compared with the same period a year ago, the government data showed.
In a volatile week's trading, oil prices had soared six dollars on Tuesday to above 70 dollars in New York as the US currency weakened against the euro and on evidence that OPEC crude exporters were cutting production as promised, analysts said.
The Organisation of the Petroleum Exporting Countries (OPEC), which pumps about 40 per cent of the world's oil, said it would cut output by 1.5 million barrels per day from November 1 to counter falling prices.