Egypt's FEC, TRAIN partner to support food exporters    Spot Gold, futures slips on Thursday, July 17th    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Egypt, Oman discuss environmental cooperation    Egypt's Environment Minister attends AMCEN conference in Nairobi    At London 'Egypt Day', Finance Minister outlines pro-investment policies    Sukari Gold Mine showcases successful public–private partnership: Minister of Petroleum    Egypt's FRA chief vows to reform business environment to boost investor confidence    Egyptian, Belarusian officials discuss drug registration, market access    Syria says it will defend its territory after Israeli strikes in Suwayda    Pakistan names Qatari royal as brand ambassador after 'Killer Mountain' climb    Health Ministry denies claims of meningitis-related deaths among siblings    Sri Lanka's expat remittances up in June '25    EU–US trade talks enter 'decisive phase', German politician says    Egypt's Health Min. discusses drug localisation with Sandoz    Needle-spiking attacks in France prompt government warning, public fear    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Greco-Roman tombs with hieroglyphic inscriptions discovered in Aswan    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    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    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    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    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Oil near $93 as weak US economy drags markets down
Published in Youm7 on 03 - 08 - 2011

Oil prices fell to near $93 a barrel Wednesday as investor pessimism about the U.S. economy dragged down global markets.
By early afternoon in Europe, benchmark oil for September delivery was down 48 cents to $93.31 a barrel in electronic trading on the New York Mercantile Exchange. Crude lost $1.10 to settle at $93.79 on Tuesday.
In London, Brent crude was down 68 cents at $115.78 a barrel on the ICE Futures exchange.
Oil prices have dropped from near $100 two weeks ago as signs of weak U.S. economic growth battered investor confidence.
On Tuesday, the Commerce Department said consumer spending fell in June for the first time in nearly two years. Meanwhile, MasterCard SpendingPulse's weekly survey of gas stations across the U.S. showed that drivers bought less gas for the 19th consecutive week.
Oil traders often look to stock markets as a barometer of overall investor sentiment, and the Dow Jones industrial average fell 2.2 percent Tuesday. Most Asian and European stock markets dropped Wednesday.
Markets fell despite a last-minute agreement among U.S. lawmakers to raise the country's debt limit and avoid a default. President Barack Obama signed legislation Tuesday that will cut federal spending by $2.1 trillion or more over the next decade.
"The U.S. economy looks weak, with recent data and events in the stock market likely to make it seem even weaker," energy consultant Cameron Hanover said in a report. "The economy is sinking quickly and history might suggest that a recession is a difficult time for austerity."
A report showed U.S. crude and oil products supplies were mixed. The American Petroleum Institute said late Tuesday that crude inventories fell 3.3 million barrels last week while analysts surveyed by Platts, the energy information unit of McGraw-Hill Cos., had predicted a rise of 2.0 million barrels.
However, inventories of gasoline rose 2.6 million barrels last week while distillates added 1.4 million barrels, the API said.
The Energy Department's Energy Information Administration reports its weekly supply data — the market benchmark — later Wednesday.
"It will be interesting to see whether there has been another drop in strategic oil reserves, which could be reflected in a rise in commercial oil stocks," said a report from Commerzbank in Frankfurt. "This would keep the pressure on the price of oil in the current market climate and help to widen the price gap further between Brent" and the Nymex contract.
The U.S. will release a total of 30 million barrels from the strategic reserve as part of the 60-million barrel release announced by the International Energy Agency in June to help cover potential shortfalls in global markets resulting from the absence of Libyan oil.
A weaker dollar helped keep a floor under oil prices by making crude cheaper for investors holding other currencies.
On Wednesday, the euro was up to $1.4305 from $1.4201 on Tuesday.
In other Nymex trading, heating oil fell 0.93 cent to $3.0823 a gallon while gasoline dropped 3.31 cents to $3.0042 a gallon. Natural gas futures were unchanged at $4.155 per 1,000 cubic feet.
___
Alex Kennedy in Singapore contributed to this report.


Clic here to read the story from its source.