Expectation of demand dip sees oil prices fall below $98 a barrel
NEW YORK - Continuing a downward movement, crude oil prices dipped below $98 a barrel Monday as election results in Europe and US employment data released last week depressed sentiments in expectations of slower economic growth and fall in energy fuel demand.
In the US, the price of oil dropped Monday to its lowest level of the year to $97.39 per barrel, a drop of $1.10 a barrel. It fell as low as $95.34 per barrel earlier in the day, 10 cents below the previous low set on Feb. 2.
Prices of the Vienna based Organization of Petroleum Exporting Countries (OPEC) also remained weak with crude oil prices in the first week of May falling to $115.7 per barrel. Brent crude lost 48 cents to $112.70 per barrel in London.
Since mid-March, OPEC oil prices have fallen for seven consecutive weeks by 6.54 percentage points.
The world's largest oil consumer, the US is expected to have lower demand with the latest employment data revealing that manufacturing and services jobs increased at a lower pace in April than what was anticipated.
According to figures released Sunday by the U.S. Department of Energy, crude oil reserves have increased to the highest level over nearly 21 years.
The vote against austerity in Europe and the persisting concerns over debt crisis is slowing growth in several countries including in Italy, Spain, France and Greece.
While demand is expected to fall, the world's crude oil supply situation looks stable.
A survey published by Reuters showed that OPEC average crude oil production reached 31.75 million barrels per day in April, representing the highest level since 2008.
Analysts said investors were also awaiting this week a series of reports on oil markets from the International Energy Agency, OPEC and others, which are expected to show rising stockpiles of crude.
"Lackluster macroeconomic conditions, easing global tensions and bearish fundamentals have started to weigh on oil prices," Morgan Stanley said in a report.
Oil prices declined after voters in France and Greece rejected incumbent leaders who supported austerity measures to fix the region's struggling economy.
Analysts warned that the election results could derail the eurozone's plan for recovery if the government austerity measures are abandoned leading to worsening of the region's debt problems.
In fact, an economic slowdown in Europe could drag down other major economies, including the U.S. and China that rely on European demand to export their goods and boost manufacturing.
In the U.S., retail gasoline fell 2.5 cents over the weekend to a national average of $3.777 per gallon on Monday, according to AAA, Wright Express and Oil Price Information Service.
"Economic indicators both in the U.S. and Europe are taking on a more negative appearance," energy trader and consultant Ritterbusch and Associates said in a report.
Comments
More Edinburgh News
RSS-
Breakaway Scotland to face high saver protection costs-UK study
By William James LONDON | Sun May 19, 2013 7:01pm EDT LONDON May 20 (Reuters) - The cost of protecting Scottish savers would prove difficult to bear if the country broke away from the rest of the UK, a study by Britain's finance ministry said on Monday. The findings come in the latest paper from the British government on how independence would impact the country. On Sunday the ...
-
Lees Of sheep and dreeps Waxing nostalgic for Scotland during a visit Down Under
Nick Lees, left, with cousin Donald Cameron, centre, and brother Jim Lees in Cape Leeuwin, where the Indian and Pacific Oceans meet off Western ...
-
Scotlands tough call stay in the UK or stay in the EU | Angus Roxburgh
a referendum on the UK's membership of the European Union . That's because the next British general election could conceivably not merely give the Scots yet another government they didn't vote for, but bring on a referendum that could take Britain out of the EU - something that is opposed, by all accounts, by a majority of Scots.Having the wrong government imposed on you can at ...
-
Home address of Ian Rankins famous fictional detective John Rebus revealed for the first time
IT'S the one mystery which has remained unsolved over 18 Rebus booksbut now author Ian Rankin has revealed the hard-drinking detective's home address for the first time.Rankin, 53, who is working on his 19th Rebus novel Saints of the Shadow Bible, had previously revealed his most famous character lived in Arden Street in Marchmont, Edinburgh.The location has been a source of ...
-
Investigation launched after woman found dead in Edinburgh garden
Hearts and Hibs - under the umbrella of one Edinburgh club - would have the football and financial muscle to take on the Glasgow ...
-
NGO Monitor Church of Scotland Fails to Correct a Terrible Wrong
PRESS RELEASE May 19, 2013 Contact: Lenny Ben-David NGO Monitor 054-216-8155 lenny.bendavid@ngo-monitor.org Church of Scotland's "revision" is no step forward Church should cut ties with religiously intolerant Sabeel organization Jerusalem - The Church of Scotland's "revision" of its April report "The Inheritance Of Abraham? A Report On The ...
-
Scotland legend Gordon McQueen reveals how a next door neighbour saved his life in battle against cancer
SCOTLAND legend Gordon McQueen yesterday revealed how a specialist surgeon who lives two doors away saved his life in his battle with throat cancer.The star told how he has reluctantly quit Sky Sports because he has lost too much power in the voice that made him a telly favourite.But the popular pundit, nicknamed Go-Go during his playing career, says he just feels lucky to be alive.The former ...
-
Mortuary worker accused of removing identification tags from body in an attempt to smear colleagues
/* SMA widget */ #sma-val-service{ text-align: center; /*margin-top:5px;*/ margin:5px auto 5px; width:230px;} #sma-val-service img{} #sma-val-service p{ float: left; width: 100%; display: block; text-align: left; } #sma-val-service p.valuation{ text-align: center; font-weight: bold; font-size: 1.5em; color: Green; } #sma-val-service span{ font-weight: bold; display: block; text-align: left; ...
-
Olympic star Freya Ross unveils new Great Scottish Run route which takes in Commonwealth Games venues
THE new Great Scottish Run course will showcase Glasgow's most famous and new sights to thousand of viewers - when it is broadcast live on October ...
-
Black market sells Stone Roses gig tickets for 40 times their face value
/* SMA widget */ #sma-val-service{ text-align: center; /*margin-top:5px;*/ margin:5px auto 5px; width:230px;} #sma-val-service img{} #sma-val-service p{ float: left; width: 100%; display: block; text-align: left; } #sma-val-service p.valuation{ text-align: center; font-weight: bold; font-size: 1.5em; color: Green; } #sma-val-service span{ font-weight: bold; display: block; text-align: left; ...
-
Scotland gets behind first ever National Onesie Day to raise cash for charity as part of Sunday Mail Centenary Fund
TINY tots, politicians and even pets stepped out in their onesies on Friday to support our cause and help raise 1 million for our 17 ...
-
Friend of Keith OBrien says the shamed cardinal would be broken if he is banned from returning to Scotland
SHAMED Cardinal Keith O'Brien would be "broken" if he is banned from returning to Scotland, according to a friend.The Vatican last week announced O'Brien would leave the country for several months "for the purpose of spiritual renewal, prayer and penance".But a parish priest who has spoken on his behalf said he had become extremely depressed by his enforced ...
-
Independent Scotland open to Cyprus-style bank risks says Britain
Reuters © Scotland's Finance Secretary John Swinney gestures during his draft budget address in the debating chamber of the Scottish Parliament in Edinburgh, Scotland September 20, 2012. REUTERS/David ...
-
Mum of Craig Mallon who was killed on stag do travels to Spain one year on in hope of piecing together beloved sons final moments
ANTOINETTE Mallon travelled from her home in Scotland to the square in Lloret De Mar where a single punch ended 26-year-old Craig's life exactly one year ...
-
Murdered schoolboys mum hits out at police as we revealed sons death is one of over 500 unresolved killings
A SUNDAY MAIL investigation last week revealed the number of killings, in the Strathclyde Police area, for which no one has been convicted is more than 500, dating back to ...
-
Hydro bosses insist new music venue will open for business on schedule as sources tip Rod Stewart as opening act
BOSSES at Scotland's major new music venue yesterday insisted they will be ready on time to welcome a superstar opening act in September.Fears had been raised that an 8million wrangle over the construction bill would delay the opening of the Hydro in Glasgow.But the venue's operators yesterday insisted they would be open for business on schedule as sources suggested veteran rocker Rod ...
-
Greenock hotel horror Police refuse to confirm whether mother and daughter died in suicide pact
POLICE are refusing to confirm whether a mum and daughter died in a suicide pact.Margaret McDonough, 52, and her daughter Nicola, 23, were found with slash wounds to their arms in Greenock's Premier Inn nine days ago.Mum-of-four Margaret was dead in her room while Nicola was in the corridor outside.She died on Monday at Inverclyde Royal Hospital.It has been claimed they may have made a ...
-
Royal Regiment of Scotland top military league of shame by failing more drug tests than any other
/* SMA widget */ #sma-val-service{ text-align: center; /*margin-top:5px;*/ margin:5px auto 5px; width:230px;} #sma-val-service img{} #sma-val-service p{ float: left; width: 100%; display: block; text-align: left; } #sma-val-service p.valuation{ text-align: center; font-weight: bold; font-size: 1.5em; color: Green; } #sma-val-service span{ font-weight: bold; display: block; text-align: left; ...
-
British Study Raises Warning on Scottish Banks
LONDON -- An independent Scotland could find its banks too big to rescue in the event of another crisis, according to a British government report that compares the Scottish financial sector to those of debt-laden Iceland and ...
-
Scotland could become another Cyprus if it becomes independent
Treasury officials will tomorrow publish analysis suggesting that Scotland's banking system is so large relative to its economy that an independent government would be unable to rescue the sector in the event of a crisis.The pro-independence lobby will see this as the latest attempt by Whitehall to sway voters in the referendum on Scottish independence, scheduled for September 2014. The ...
News from around our Network
Comments
No comments yet for this story
Have your say