Tuesday, June 29, 2010
Crude Falls as Chinese Growth Is Seen Slowing, Storm Avoids Gulf Platforms
“It’s been our thesis that China was going to slow and oil was overpriced as a result,” said Addison Armstrong, director of market research at Tradition Energy, a Stamford, Connecticut based procurement adviser. “In the current forecast, it appears the storm is a non event in terms of damage to the Gulf of Mexico.”
Oil for August delivery fell $2.47, or 3.2 percent, to $75.78 a barrel at 9:07 a.m. on the New York Mercantile Exchange. Earlier, crude touched $75.63 a barrel in the biggest one day drop since June 4. It has dropped 4.5 percent this year and 9.5 percent this quarter. Oil also declined as equity markets dropped and the dollar strengthened against the euro, curbing the appeal of commodities as an alternative investment.
Reporter Margot Habiby can be reached at firstname.lastname@example.org.
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