EGP declines vs. USD at Thursday's close    Euro area inflation rises to 2.0% in October '24 – flash estimates    IF YOU LOVE SOMEONE WHO SMOKES, GIVE THEM THE FACTS    Asian stocks slide as chip sector weakens    Egypt's Minister of Environment highlights biodiversity issues at COP16    Egypt's Agriculture Minister meets Syrian, Bahraini counterparts to boost cooperation in Amman    Al-Qassam Brigades targets Israeli vehicles in eastern Gaza    ACUD, DP World, and GAFI sign MoU to develop free zone in New Capital    Egyptian government encourages increased mutual investment with Bahrain: Finance Minister    A Tale of Two Cities: Alexandria hosts 2nd edition of exhibition celebrating Greek, Egyptian cultural ties    Egypt, Djibouti leaders discuss strengthening ties, regional issues    Egypt's FM affirms commitment to Sahel security, offers support to Niger    Egyptian banking sector support underprivileged communities in Alexandria – CBE    Afghanistan signs $163m deal for cement plant    US tightens tech investment rules for China    Biden unveils $3b investment to strengthen US port infrastructure    Military Production, Environment Ministers inaugurate banana fiber recycling plant    Luxor Museum to host exhibition on 19th century antiquities inspection tours    Nourhan Kamal Wins 2024 Helmi Sharawy Award for African Studies    Egypt observes Intl. E-waste Day, highlights recycling efforts    Egypt's military capabilities sufficient to defend country: Al-Sisi    Al-Sisi emphasises water security is Egypt's top priority amid Nile River concerns    Cairo Opera House hosts grand opening of Arab Music Festival, Conference    Grand Egyptian Museum ready for partial trial run on October 16: PM    Colombia unveils $40b investment plan for climate transition    Kabaddi: Ancient Indian sport gaining popularity in Egypt    Ecuador's drought forces further power cuts    Al-Sisi orders sports system overhaul after Paris Olympics    Basketball Africa League Future Pros returns for 2nd season    Egypt joins Africa's FEDA    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Paris Olympics opening draws record viewers    Who leads the economic portfolios in Egypt's new Cabinet?    Financial literacy becomes extremely important – EGX official    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    Egypt records 36 new deaths from Covid-19, highest since mid June    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Oil slides $5 on economic gloom, dollar
Published in Daily News Egypt on 22 - 09 - 2011

LONDON: Oil prices fell by more than $5 a barrel on Thursday with US futures touching $80.25 a barrel, as a combination of dismal signals heightened worries about global economic growth and a rallying US dollar added to downward momentum.
Investors were rattled by the US Federal Reserve's statement that the world's largest oil consumer faced significant downside risks, and analysts worried measures to kick-start growth would be insufficient.
Adding to gloom, a slowdown in China and the worst euro zone private sector growth in over two years cast clouds over the outlook for the global economy.
"It's a combination of no QE3, low economic growth, China's PMI falling and European PMI data either slightly or widely below expectations," said Thorbjørn Bak Jensen, an analyst at A/S Global Risk Management Ltd.
US crude futures were down $4.32 at $81.60 a barrel at 1404 GMT, while Brent futures were $3.76 lower at $106.60 a barrel.
Further downward pressure on Thursday was exerted by the US dollar, which rose to the highest since February against a basket of currencies as investors fled from risky assets.
"Treasuries have rocketed up since the US traders have come in and that's taking Bunds with it... this is a serious risk-off trade today, wherever you look," a trader said.
Clouds gather
The euro zone's private sector contracted this month for the first time in two years, underscored by German business activity figures dropping to a 26-month low.
With signs the crisis in Greece and other Mediterranean countries was spreading to others in Europe, and a far-from-reassuring prognosis issued by the Fed, fears were magnified by Chinese manufacturing sector data.
A survey showed factory activity in the world's number two economy contracted for a third month, indicating China may fail to provide a counterweight to flagging US and European growth.
The disappointing round of economic data helped send world stocks to a fresh one-year low and investors to pour money into safer currencies.
US Treasury Secretary Timothy Geithner said the European debt crisis and political divisions in the US were the biggest threats to the global economy at a meeting of the Group of 20 on Thursday.
"The two other clouds still over us are the European crisis and the deep concern that you can see across the world and around the country about whether the political system in the United States is up to the challenges we face," Geither said.
The G20 meeting on Thursday and Friday was expected to focus on Europe's debt crisis as fears about a Greek default and contagion to larger euro zone economies multiply.
Mounting gloom about Europe combined with pessimism about the success of the Fed's "Operation Twist" wiped out Wednesday's bullish sentiment after weekly US Energy Information Administration data showed crude inventories fell to the lowest level since January. –Additional reporting by Manash Goswami


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