Oil falls below $72 on economic worry


THURSDAY, 08 JULY 2010 01:14


Crude oil dipped on Wednesday, set to stretch its losing streak for the past six trading sessions, as global investors remained concerned that the world’s economic growth was faltering.By 0911 GMT, U.S. crude oil futures fell 10 cents to $71.88 a barrel, after touching $71.09 on Tuesday, its lowest intraday price since June 8. ICE Brent crude futures were six cents down at $71.38.


Thorbjorn Bak Jensen, analyst with Global Risk Management in Denmark, said the oil market would continue to be influenced by macro-economic data as participants try to assess future demand for crude.But the downside in oil prices may be limited by an expected fall in U.S. oil inventories when weekly data is released from the American Petroleum Institute (API) at 2030 GMT and another set from the government on Thursday.


The release has been delayed by one day due to the U.S. Independence Day holiday on Monday. “Today’s important numbers include the eurozone revised first quarter GDP, German industrial orders, U.S. Redbook and chain store sales figures…,” Jansen said.


“A large expected crude inventory draw is keeping prices afloat during early trading.“API inventory figures are due 20:30 today. In our opinion, speculators believe that the markets are generally oversold and will be looking to take positions upon any positive news….”





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