Oil prices slide Along With Stock Market

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Oil prices slide Along With Stock Market

Friday, 21 May 2010 09:25

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Oil prices slide Along With Stock Market
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London - World oil prices fell on Thursday, reaching the lowest eight months since the stock market drop after bad surprises in the U.S. employment data, the world's largest energy consumer.

New York's main contract, light sweet crude for June delivery, reached 67.05 dollars per barrel - the lowest level since September.

The price of oil later stood at 67.30 dollars, down 2.57 dollars compared to the closing Wednesday.

June contract, which expires at the close, has fallen below 68 dollars on Wednesday, amid concerns about the impact of the euro zone crisis on energy demand.

Elsewhere on Thursday, Brent North Sea crude oil for July delivery dropped 2.55 dollars to 71.14 dollars per barrel in late London trading.

New U.S. jobless claims rose for the first time in five weeks, according to a report published on Thursday, raising fears that the main cogs faltering U.S. recovery.

Labor Department said initial jobless claims amounting to 471 000 in the week ended May 15, up 25,000 or 5.6 percent the previous week from a revised figure 446 000.

This figure is higher than the average estimate of analysts declined to 439 000 new claims and beat expectations that the U.S. job market eventually improves.

"This step is really the opposite of expectations," said Jeffrey Rosen, an economist at Briefing.com.

"Strengthening the employment market is a myth, or at least it is what the last piece of the latest data from the Labor Department will give the impression," said Rosen.

Global stock markets, already under huge pressure from fears of debt crisis in Europe, slumped in the middle of the data.

Commerzbank analyst, Carsten Fritsch believes that oil below 70 dollars per barrel may be tempting many traders to partially redeem their money.

"Some market players are likely to see prices below $ 70 as a buying opportunity," said Fritsch.

Elsewhere on Thursday, energy group BP acknowledged that more fuel is leaking into the Gulf of Mexico than previously thought.

A month after the blast tore the drilling rig hired by BP, said spokesman Mark Proegler a vacuum tube is now 5000 barrels - or 210 000 gallons - of oil spills from wells that exploded.

"Right now we are collecting 5000 barrels per day, maybe would be less than that," said Proegler of the company's initial estimate of 5000 barrels of oil leaked into the water. | Antaranews | tenderoffer.biz |

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