Oil slips below $44, lowest in almost 4 yrs December 5, 2008
Posted by dhirendra1972 in Economic slowdown, Light Crude, Oil demands.Tags: Crude, Economic, Oil
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Good morning friends.
Oil was steady below $44 on Friday, at its lowest in almost four years, with eyes turning to the psychologically important $40 level as a widening economic slowdown gnaws into Oil demand.
Prices have lost nearly 20 per cent, or almost $11, from their settlement a week ago following the release of weak US economic indicators, with lower retail sales and a 26-year high in jobless benefits rolls the latest to add pressure to prices.
US light crude for January delivery fell 4 cents to $43.63 a barrel, having lost more than 6 per cent on Thursday to settle at $43.67, the lowest since Jan.5, 2005.
London Brent crude dipped 8 cents to $42.20.
“$40 is a very important psychological level,” said Tetsu Emori, fund manager at Astmax Co Ltd. “We first hit $40 in 2004 and prices then started accelerating up from there. We still have to find where the bottom line is for prices.”
The number of US workers collecting jobless benefits hit a 26-year high last month, data showed on Thursday, and may head higher as a growing economic slump forces a broad range of firms to cut jobs.
ref: indianexpress
