The Black Gold Down $ 80
Gold Investing August 2nd, 2010
SINGAPORE – Oil prices fell toward $ 80 per barrel at the close on Thursday (25/3/2010) in Asian trade. This extended from the previous day’s losses after the increase in U.S. crude oil inventories and consumer demand is still weak.
Benchmark crude for May delivery fell 25 cents to $ 80, 36 per barrel during the day Singapore time in electronic trading on the New York Mercantile Exchange (NYMEX) or a contract loss of $ 1, 30 to settle at $ 80, 61 per barrel on Wednesday.
U.S. Department of Energy on Wednesday reported that U.S. crude oil inventories rose 7.3 million barrels to 351.3 million barrels last week. Analysts expect an increase again to 1.67 million barrels.
Meanwhile, oil demand in Europe is far worse than the United States, with France, Italy, Spain and the UK fell by 10 percent in January compared to the previous year.
Some analysts worry that higher unemployment rates in the U.S. and Europe will continue to drag the consumer demand.
“It’s reasonable to assume that the U.S. unemployment rate will remain stubbornly high for at least two years. The table is set against the decline in gasoline demand, not only in the U.S., but jugadi Europe,” said energy analyst Stephen Schork, as the quotes from The Associated Press (AP), Friday (26/3/2010)
In other NYMEX trading in April next, heating oil fell 0.37 cents to $ 2, 067 per gallon, and gasoline steady at $ 2, 22 per gallon. Natural gas fell 1.0 cent to $ 4, 095 per 1,000 cubic feet.
In London, Brent crude fell 16 cents to USD79, 46 on the ICE futures exchange
