Black Tuesday for oil

Oil prices fall worldwide

In brief: Oil price declines on weak demand and recession worries.

Recession holds the raw material in limbo. Oil demand is not growing, in spite of instability in Iran. Traders remain lightweight shock and don’t know how to react properly. Their hopes for a rise in prices this week did not materialize. Oil prices fell on Tuesday, trading under 67 dollars in London as global economic recovery hopes were dampened, analysts said.

A decline in world stock markets weighed on the oil market while a stronger dollar prompted many traders to lock in profits from a recent rally that saw prices climb past 73 dollars, they said.   New York’s main futures contract, light sweet crude for delivery in August, slid 34 cents to 67.16 dollars a barrel. The July contract expired Monday at 66.93 dollars.   London’s Brent North Sea crude for August dropped 31 cents to 66.67 dollars. “Crude oil … has continued lower this morning as market participants’ confidence in an economic recovery receded,” said Nimit Khamar, energy market analyst with the Sucden brokerage in London.

Ukranian Globalist
2009-06-23 14:25, Commodities.

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