Oil slides below $70 as traders eye US economy
Oil prices slid below $70 a barrel Friday as signs of a sluggish U.S. economic recovery discouraged stock and crude investors.
By midday in Europe, benchmark crude for November deliver was down 95 cents at $69.87 in electronic trading on the New York Mercantile Exchange. The contract added 21 cents to settle at $70.82 on Thursday.
Crude has hovered around $70 for months amid mixed signals about the strength of the U.S. economic recovery. On Thursday, poor economic data sparked a sell-off in U.S. stock markets.
The Labor Department said new claims for jobless benefits rose last week to 551,000, more than analysts expected. And the Institute for Supply Management said its index of manufacturing activity in September fell when analysts had expected an increase.
The Dow Jones industrial average fell 2.1 percent Thursday, triggering a sell-off in Asia. Japan’s Nikkei 225 stock average closed Friday down 2.5 percent and Hong Kong’s Hang Seng lost 2.8 percent. Stocks were also lower in Europe, with London’s FTSE 100 and Germany DAX both down 0.7 percent and the CAC 40 in Paris off by 1.2 percent.
“At $70 a barrel, investors have priced in a fairly sharp economic recovery,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. “That makes it vulnerable to bad economic news.”
Investors will be closely analyzing the government’s monthly jobs report, which is scheduled to be released later on Friday.
Economists expect America’s jobless rate to rise slightly to 9.8 percent, from 9.7 percent in August, while employers are forecast to have cut 180,000 jobs, which would be the fewest since August 2008.
“If job losses exceed 200,000, prospects for strong second half GDP growth will dim significantly,” said Peter Morici, a former chief economist at the U.S. International Trade Commission.
In other Nymex trading, heating oil fell 2.33 cents to $1.8041 a gallon. Gasoline for November delivery dropped 2.49 cents to $1.7330 a gallon. Natural gas for November delivery gained 1.5 cents to $4.481 per 1,000 cubic feet.
In London, Brent crude fell 89 cents to $68.30 on the ICE Futures exchange.
Associated Press writer Alex Kennedy in Singapore contributed to this report.
| - Lower jobless claims, muted inflation add to hopes for gradual economic recovery
- Lawmakers seek to extend $8,000 tax credit for first-time homebuyers
- Stock slip after Goldman Sachs, Citigroup earnings disappoint a day after Dow tops 10,000
- Stock slide after Goldman Sachs, Citigroup earnings disappoint a day after Dow tops 10,000
- New jobless claims drop unexpectedly to 514,000; inflation remains muted
- Stock futures fall but pull off lows as jobless claims drop; Goldman, Citi numbers disappoint
- New jobless claims drop unexpectedly to 514,000, continuing claims fall below 6 million
- Foreclosures keep soaring as unemployment remains main cause of housing woes
|
Related News
Oil slides below $69 in European trade as weak US unemployment figures shake recovery hopesOctober 2nd, 2009 Oil slides below $69 on weak US jobs dataOil prices fell by more than $2 to below $69 a barrel Friday as disappointing U.S. unemployment figures reinforced doubts about the U.S.
Oil falls to near $70 in Asia as investors eye weak US economic dataOctober 1st, 2009 Oil falls to near $70 as traders eye US economySINGAPORE — Oil prices fell to near $70 a barrel Friday in Asia as signs of a sluggish U.S. economic recovery discouraged stock and crude investors.
Oil hovers below $69 in Asia as investors weigh weak crude demand, economic recoverySeptember 14th, 2009 Oil hovers below $69 amid weak crude demandSINGAPORE — Oil prices hovered below $69 a barrel Tuesday in Asia as investors weighed concerns about weak crude demand against optimism of a global economic recovery. Benchmark crude for October delivery was down 1 cent at $68.84 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
Oil falls to near $72 in Asia as mixed US economic data suggest slow recoveryAugust 21st, 2009 Oil falls to near $72 amid mixed US economic dataSINGAPORE — Oil prices fell to near $72 a barrel Friday in Asia as mixed economic data from the U.S. point to a slow recovery.
Oil falls below $67 in Asia as investors eye weak US consumption, brush off Japan growthAugust 17th, 2009 Oil falls below $67 on weak US consumptionSINGAPORE — Oil prices slipped below $67 a barrel Monday in Asia on investor concerns crude demand will remain weak amid a slow global economic recovery. Benchmark crude for September delivery was down 59 cents to $66.92 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange.
Oil falls below $66 in Asia as investors eye weak US consumption, brush off Japan's growthAugust 17th, 2009 Oil falls below $66 on weak US consumer confidenceSINGAPORE — Oil prices fell below $66 a barrel Monday in Asia on investor concerns that crude demand will remain weak amid a slow global economic recovery. Benchmark crude for September delivery was down $1.63 to $65.88 a barrel by late afternoon in Singapore in electronic trading on the New York Mercantile Exchange.
Oil slips to near $71 in Asia as investors eye US unemployment dataAugust 7th, 2009 Oil slips to near $71 ahead of US jobless dataSINGAPORE — Oil prices fell to near $71 a barrel Friday in Asia as investors looked to U.S. monthly employment figures later in the day for signs the economy may be recovering.
Oil slips below $72 in Asia as investors eye US unemployment dataAugust 7th, 2009 Oil slips below $72 ahead of US unemployment dataSINGAPORE — Oil prices traded below $72 a barrel Friday in Asia as investors looked to U.S. monthly employment figures later in the day for signs the economy may be recovering.
Weak dollar, improving data on housing, consumer spending send commodity prices higherAugust 4th, 2009 Weak dollar, upbeat data support commoditiesNEW YORK — A weak dollar and more upbeat data on the economy is making a strong case for buying precious and industrial metals. Commodity prices are higher for a fourth day in a row as the National Association of Realtors says pending home sales rose in June by more than analysts had expected.
Oil hovers below $64 in Asia as investors eye company results, weak crude demandJuly 21st, 2009 Oil hovers below $64 as earnings, demand weighedSINGAPORE — Oil prices hovered near $64 a barrel Tuesday in Asia as investors weighed improving corporate results against weak crude demand. Benchmark crude for August delivery was down 23 cents to $63.75 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange.
Oil hovers near $64 in Asia as investors eye company results, weak crude demandJuly 21st, 2009 Oil hovers near $64 as earnings, demand weighedSINGAPORE — Oil prices hovered near $64 a barrel Tuesday in Asia as investors weighed improving corporate results against weak crude demand. Benchmark crude for August delivery was up 5 cents to $64.03 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
Oil slides toward $59 in Asia, extending 19 percent, 2-week sell-off on economy doubtsJuly 13th, 2009 Oil slides toward $59, extending 2-week sell-offSINGAPORE — Oil prices slid to near $59 a barrel Monday in Asia, extending a two-week sell-off fueled by growing investor pessimism about global economic growth and crude demand. Benchmark crude for August delivery was down 47 cents to $59.42 a barrel by late afternoon Singapore time, after falling as low as $58.88, in electronic trading on the New York Mercantile Exchange.
Stocks begin holiday-shortened week in positive territory, investors await week's key dataJune 29th, 2009 Stocks open higher ahead of week's key dataNEW YORK — Investors are beginning a holiday-shortened week on a positive note. Stocks are slightly higher in early trading Monday, following mixed moves in overseas markets.
Bond yields slide as weak economic data sends stocks lower, boosts demand for TreasurysJune 3rd, 2009 Bond yields fall for 2nd day on weak economic dataNEW YORK — Treasury prices recovered Wednesday as stock investors reined in their enthusiasm about the U.S. economy. Yields on long-term Treasurys, a barometer for interest rates on mortgages and other loans, fell for a second straight day Wednesday following lackluster economic reports.
Oil slides below $68 in Asia as investors watch economic recovery, inflationJune 2nd, 2009 Oil slides below $68 as investors eye inflationVIENNA — Oil prices slipped below $68 a barrel Tuesday as traders took profits on recent gains, which were driven by speculation that a massive global fiscal stimulus could spark an economic recovery and inflation. Benchmark crude for July delivery was down 64 cents to $67.94 a barrel by afternoon in European electronic trading on the New York Mercantile Exchange.
Loading ...