Wednesday, June 30, 2010

Crude Oil Falls on Concerns China, U.S. Growth Is Slowing

Crude oil fell for a fourth day in New York, the longest losing streak in seven weeks, amid concern the economic recovery in the U.S. and China will slow, curbing demand in the world’s two largest energy consumers. Oil dropped 0.4 percent yesterday, capping the first quarterly decline since 2008, after reports showed a slowdown in U.S. private payrolls last month and an unexpected increase in weekly gasoline supplies. China’s manufacturing expanded at a reduced pace for a second month in June, adding to signs the fastest growing major economy is cooling.

“Sentiment on the economy can be considered still negative, not so strong,” said Ken Hasegawa, a commodity derivatives sales manager at broker Newedge Group in Tokyo. “The stock market is very weak and that’s helping crude oil to fall.” Oil for August delivery fell as much as $1, or 1.3 percent, to $74.63 a barrel in electronic trading on the New York Mercantile Exchange. It was at $74.95 at 1:13 p.m. in Singapore. Yesterday, the contract decreased 31 cents to $75.63. Futures, down about 6 percent this year, lost 9.7 percent in the second quarter. The market is in its longest pullback since a six day drop through May 18.....Read the entire article.

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