Crude oil fell more than $2 a barrel as confidence among U.S. consumers dropped in February to the lowest level in 10 months, a signal that energy demand may be slow to recover.
Oil for April delivery decreased as much as 2.6 percent from a five week high as the Conference Board’s confidence index weakened to 46, lower than anticipated, from a revised 56.5 in January. A report earlier today showed German business confidence declined for the first time in 11 months in February.
“This is a huge drop from the Conference Board,” said Phil Flynn, vice president of research at PFGBest in Chicago. “If consumers are going back into the hole, the likelihood of gasoline demand being strong is pretty weak.”
Crude oil for April delivery declined $1.94, or 2.4 percent, to $78.37 a barrel at 10:15 a.m. on the New York Mercantile Exchange. Earlier, it touched $78.22 a barrel.
Yesterday, the March contract expired at $80.16, capping a five day rally of 8.1 percent.
The Ifo institute in Munich reported earlier today that its business climate index, based on a survey of 7,000 executives, fell to 95.2 from 95.8 in January. Economists expected a gain to 96.1, according to the median of 37 forecasts in a Bloomberg News survey.....Read the entire article.
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