April 9, 2010 - 6:49AM
Crude oil fell to a one-week low after a gain in US jobless claims and speculation Greece may default signaled that the global economic recovery may slow.
Oil declined as much as 1.7 per cent after the Labor Department reported that initial jobless applications increased by 18,000 to 460,000 in the week ended April 3. Prices also dropped after a government report yesterday showed that US supplies of crude rose as refiners increased processing rates.
"Most of the economic data of the last two weeks has been favorable," said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. "That wasn't the case with today's numbers."
Crude oil for May delivery fell 48 US cents, or 0.6 per cent, to $US85.40 a barrel at theclose of floor trading on the New York Mercantile Exchange. Oil touched $US84.38, the lowest price since April 1. Futures are up 7.6 per cent this year.
Economists forecast claims would fall to 435,000 from a previously reported 439,000 the prior week, according to the median of 47 projections in a Bloomberg News survey.
"The dynamics of the oil market appear to have changed," said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois-based consultant.
Yesterday, oil declined 1.1 per cent in New York to settle at $US85.88, dropping from an 18-month intraday high of $US87.09 reached on April 6.
"The inability to make a new high has spurred selling," said Michael Fitzpatrick, vice president of energy at MF Global in New York. "There's also a growing realization that new highs would be enough to put an end to the fragile recovery."
Source: http://www.businessday.com.au/business/markets/oil-hits-oneweek-low-after-jobless-claims-rise-20100409-rvij.html
Crude oil fell to a one-week low after a gain in US jobless claims and speculation Greece may default signaled that the global economic recovery may slow.
Oil declined as much as 1.7 per cent after the Labor Department reported that initial jobless applications increased by 18,000 to 460,000 in the week ended April 3. Prices also dropped after a government report yesterday showed that US supplies of crude rose as refiners increased processing rates.
"Most of the economic data of the last two weeks has been favorable," said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. "That wasn't the case with today's numbers."
Crude oil for May delivery fell 48 US cents, or 0.6 per cent, to $US85.40 a barrel at theclose of floor trading on the New York Mercantile Exchange. Oil touched $US84.38, the lowest price since April 1. Futures are up 7.6 per cent this year.
Economists forecast claims would fall to 435,000 from a previously reported 439,000 the prior week, according to the median of 47 projections in a Bloomberg News survey.
"The dynamics of the oil market appear to have changed," said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois-based consultant.
Yesterday, oil declined 1.1 per cent in New York to settle at $US85.88, dropping from an 18-month intraday high of $US87.09 reached on April 6.
"The inability to make a new high has spurred selling," said Michael Fitzpatrick, vice president of energy at MF Global in New York. "There's also a growing realization that new highs would be enough to put an end to the fragile recovery."
Source: http://www.businessday.com.au/business/markets/oil-hits-oneweek-low-after-jobless-claims-rise-20100409-rvij.html
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