Oil prices slip in Asian trade
Friday, 6 June 2008
SINGAPORE, June 5 (AFP): Oil prices slipped in Asian trading Thursday amid fresh concerns of weakening global growth which could dampen energy demand, analysts said.
A firmer US dollar, which makes dollar-denominated commodities like crude more expensive for foreign buyers, was also a factor behind the weaker oil prices, they said.
New York's main contract, light sweet crude for July delivery, dropped 25 cents to 122.05 dollars a barrel. The contract finished at 122.30 dollars at the close of floor trading in the United States Wednesday after falling 2.01 dollars.
Brent North Sea crude for July delivery fell 39 cents to 121.71 dollars a barrel following a drop of 2.48 dollars to 122.10 dollars in London Wednesday.
The Organisation for Economic Cooperation and Development (OECD), which groups 30 of the world's leading industrialised nations, slashed its growth forecast Wednesday.
The OECD in a twice-yearly survey said its member economies were confronting "three adverse shocks"-financial market uncertainty, a housing downturn and soaring food and energy prices.
It predicted that momentum in the industrialised world would slow to 1.8 per cent this year, from 2.7 per cent in 2007, and to 1.7 per cent in 2009.
The OECD said the US economy was expected to remain sluggish all year before staging a gradual recovery in 2009.
Latest figures from the US Department of Energy (DoE) showing a bigger-than-expected rise in petrol reserves was also a sign of slowing demand, dealers said.
Analysts said the figures pointed towards slowing demand in the world's biggest energy-consuming nation as consumers recoil from high gasoline prices.
India's government Wednesday boosted fuel prices again to stem huge losses at state-run oil firms, stirring widespread political anger and worries about higher inflation.
Malaysia announced similar moves as the government there sought to ease the massive burden of fuel subsidies.
Despite recent losses, oil prices have still gained almost a quarter since they smashed through 100 dollars per barrel at the start of 2008, and traders remain worried that the high cost could erode global energy demand.
A firmer US dollar, which makes dollar-denominated commodities like crude more expensive for foreign buyers, was also a factor behind the weaker oil prices, they said.
New York's main contract, light sweet crude for July delivery, dropped 25 cents to 122.05 dollars a barrel. The contract finished at 122.30 dollars at the close of floor trading in the United States Wednesday after falling 2.01 dollars.
Brent North Sea crude for July delivery fell 39 cents to 121.71 dollars a barrel following a drop of 2.48 dollars to 122.10 dollars in London Wednesday.
The Organisation for Economic Cooperation and Development (OECD), which groups 30 of the world's leading industrialised nations, slashed its growth forecast Wednesday.
The OECD in a twice-yearly survey said its member economies were confronting "three adverse shocks"-financial market uncertainty, a housing downturn and soaring food and energy prices.
It predicted that momentum in the industrialised world would slow to 1.8 per cent this year, from 2.7 per cent in 2007, and to 1.7 per cent in 2009.
The OECD said the US economy was expected to remain sluggish all year before staging a gradual recovery in 2009.
Latest figures from the US Department of Energy (DoE) showing a bigger-than-expected rise in petrol reserves was also a sign of slowing demand, dealers said.
Analysts said the figures pointed towards slowing demand in the world's biggest energy-consuming nation as consumers recoil from high gasoline prices.
India's government Wednesday boosted fuel prices again to stem huge losses at state-run oil firms, stirring widespread political anger and worries about higher inflation.
Malaysia announced similar moves as the government there sought to ease the massive burden of fuel subsidies.
Despite recent losses, oil prices have still gained almost a quarter since they smashed through 100 dollars per barrel at the start of 2008, and traders remain worried that the high cost could erode global energy demand.