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Oil prices drop amid new fear for US economy
NEW YORK
Petroleumworld.com, Aug 30, 2010Oil prices dropped on Monday, ending three straight days of gains, as concerns returned over the pace of the recovery in the world's largest oil consumer, the United States.
New York's main contract, light sweet crude for delivery in October, was down 47 cents to 74.70 dollars a barrel, and Brent North Sea crude for delivery in October dipped five cents to 76.60 dollars.
Monday's losses come as trade in London was closed due to a public holiday.
Trade was marked by tense anticipation to a string of new US data this week, including industrial manufacturing numbers on Wednesday and key employment figures on Friday, both expected to indicate an economic slowdown.
"Over the last couple of days there hasn't been much news and the equity market is off a little bit as well," said market analyst Andy Lipow of Lipow Oil Associates.
"We are waiting to see what the next headline brings on the economic front."
Oil prices were further hurt by a report from the Commerce Department, which showed that personal incomes rose just 0.2 percent in July in the US, less than the predicted gain of 0.3 percent.
Friday's reassurances by Federal Reserve chairman Ben Bernanke on the US economy failed to stimulate the markets.
In a highly anticipated speech, Bernanke said prospects for a US growth pick-up appeared to "remain in place" despite a sharp cutback in the pace of second-quarter economic expansion.
Bernanke added that the Fed would take more "unconventional" steps to boost growth if the economic outlook "deteriorated significantly".
Story from AFP
AFP 08/30/2010 21:03
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