Go Finance Reporting in LONDON - Oil prices pulled back down due to negative sentiment in a number of commodity prices, declining economic data United States (U.S.), a stronger dollar and concerns over weakening demand for energy.
As reported by AFP from the site on Saturday (05/07/2011), New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in June fell by USD96, 63 in London trading on Friday after losing more than eight percent to USD99, 80 where it is the first time the oil price below U.S. $ 100 dollars since March 16, 2011 last.
Meanwhile, crude for Brent North Sea for delivery in June also dropped more than five dollars, reaching its lowest point at the level of USD105, 15 per barrel.
According to some analysts WTI decline at some time ago, it is the heaviest since the beginning of the global financial crisis on September 29, 2008 where more than 9.0 percent decline.
"Commodities in general suffered a significant setback yesterday, as worries over economic growth in the United States that pushed the price, oil prices are very weak, with an additional decline this morning. A stronger U.S. dollar on the day also contributed to weakness." Westhouse Securities analyst said, David Hurt.
Meanwhile, crude oil futures also fell sharply in response to China's economic data and fears of debt crisis, the euro zone after Portugal suffered a debt bailout.
"The weak data from China which is more than expected as well as renewed concerns about the euro zone and the debt problems of countries and the disappointing U.S. economic data have established a negative tone in the market. The figures are disappointing in the U.S. work provided the impetus to further weakness in the market which encourages investors to oil is heavy sell-off in oil prices and base metals, "added Sucden analyst, Myrto Sokou.
On this week a number of commodity prices decline, due to the impact of the weakening euro against the dollar after European Central Bank has raised doubts for immediate interest rate.
The euro, which dropped sharply on Thursday as the impact of after the ECB held rates and the president Jean-Claude Trichet dropped his key word "vigilant" in reference to seeing a bank inflation.
Which is widely regarded as a signal that the ECB will not follow last month's rate increase rapidly with the others, triggering a rise in the dollar. One dollar float tends to make dollar-priced commodities more expensive for buyers using weaker currencies. In turn, that tends to cause a decline in demand and eventually attract a lower price. (GoFinance)
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