Oil prices slip
Sunday, 14 March 2010
NEW YORK, March 12 (AFP): Oil prices fell today after news of a surprise decline in US consumer confidence in the world's biggest oil- consuming nation stirred concern about energy demand.
New York's main contract, light sweet crude for April delivery, dropped 87 cents to close at 81.24 dollars a barrel.
London's Brent North Sea crude for April shed 89 cents to settle at 79.39 dollars a barrel.
Earlier in the session the New York benchmark futures contract had climbed above 83 dollars.
"The market might be responding to the consumer confidence number that was worse than expected," said Jason Schenker of Prestige Economics.
The University of Michigan's consumer confidence index dropped for the second consecutive month in March, to 72.5 from 73.6 in February, instead of rising to 74.0 as analysts expected.
"That was a surprise to the market, and right now consumer confidence, especially in the face of rising gasoline prices, is a concern for some market participants," Schenker said.
The analyst said that "some profit taking" may have occurred because the market had gotten to 83 dollars, "and the market can be overreacting."
Analysts say that weak consumer confidence could curb energy demand as the world's largest economy struggles to recover from the worst recession in decades.
Independent trader Ellis Eckland said the market's movement was more a "trader game" ahead of the weekend.
New York's main contract, light sweet crude for April delivery, dropped 87 cents to close at 81.24 dollars a barrel.
London's Brent North Sea crude for April shed 89 cents to settle at 79.39 dollars a barrel.
Earlier in the session the New York benchmark futures contract had climbed above 83 dollars.
"The market might be responding to the consumer confidence number that was worse than expected," said Jason Schenker of Prestige Economics.
The University of Michigan's consumer confidence index dropped for the second consecutive month in March, to 72.5 from 73.6 in February, instead of rising to 74.0 as analysts expected.
"That was a surprise to the market, and right now consumer confidence, especially in the face of rising gasoline prices, is a concern for some market participants," Schenker said.
The analyst said that "some profit taking" may have occurred because the market had gotten to 83 dollars, "and the market can be overreacting."
Analysts say that weak consumer confidence could curb energy demand as the world's largest economy struggles to recover from the worst recession in decades.
Independent trader Ellis Eckland said the market's movement was more a "trader game" ahead of the weekend.