| Crude Oil Prices Fall Nearly Four Dollars |
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| Friday, 05 February 2010 08:29 | |||
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New
York - Crude oil prices fell almost four dollars on Thursday local time
following a surprise rise in weekly initial jobless claims U.S. and
European debt crisis.
The main futures contract, New York, light sweet crude for March delivery, slumped 3.84 dollars to 73.14 dollars per barrel. In London, oil, Brent North Sea crude for March fell 3.79 dollars to 72.13 dollars per barrel. A sharp decline in prices occurred because European stock markets slumped Thursday and the U.S., with growing concern over debt problems in several economic zones and the higher-than-expected U.S. jobless claims surge. Euro also fell below 1.38 dollars for the first time in seven months in the middle of the flight to "safe-haven" U.S. dollar. "Concern has pushed the national debt in the global sell; commodities have come down soon after the widespread losses in equity markets," analysts at Briefing.com said in a client note. "Auction bad bonds in Portugal and Spain yesterday today has spurred concerns about unhealthy debt level of each country," they said. Also followed the market, reports periodic adjustments to the U.S. Labor Department, where initial unemployment insurance claims rose to 480,000 in the week ended January 30, 8000 rose from the previous week revised up to 472,000. The data was worse than the consensus estimate of 455,000 new claims. Initial claims rose in three of four weeks ago, a trend that has not happened since August, data showed. The last time new claims were so high that in the week ending December 12. Initial claims figures came ahead of the disappointing unemployment and employment data that will come out in January Friday. Most analysts expect the Labor Department will melaporan unemployment at 10 percent and the economy created 15,000 jobs, after losing 85,000 in December. "Short covering before the job numbers do not replace the veil of pessimism has descended into the market," said Mike Fitzpatrick of MF Global. Bart Melek of BMO Capital Markets said, "tastes risk falling far. "At the end of the day, there are fears that global growth will slow." Crude oil prices also fell on Wednesday after a surprise jump of oil supplies in the United States, the world's biggest energy consumer. Movements "roller-coaster ride for a few days after oil prices soared earlier this week amid growing optimism about global economic growth following the U.S. manufacturing positive data, traders said. The market also has won support from news of new unrest in major oil-producing region of Nigeria. "The euphoria which emerged in the early weeks of the manufacturing data appears to have reached a temporary end, has contributed to large price increases and strong," said analyst Philip's PVM Oil Associates Wiper. "There is a need for something extra to give the market the next improvement, and expectations will be high for tomorrow (Friday) data non-agricultural wages in the United States. | Antaranews.com | tenderoffer.biz |
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