Crude Oil Declines to Lowest in a Week on Asian Demand, European Crisis
By Grant Smith - Nov 21, 2011 6:07 AM ET
Oil fell for a third day to its lowest price in more than a week in New York on concern that Europe’s debt crisis and slower Asian economic growth will curtail fuel demand.
Futures dropped as much as 2.1 percent to their lowest since Nov. 10. European stocks have lost 18 percent this year as surging borrowing costs for governments raise the risk of recession. Japan, the world’s third-biggest crude consumer, reported the first drop in exports in three months. Saudi Arabian Oil Co. Chief Executive Officer Khalid Al-Falih said the world economy is at risk of a double-dip recession amid sovereign debts and weak U.S. growth.
“Fear that something really bad could happen in Europe, hence demand could fall, has been the main reason prices have been so subdued,”
Amrita Sen, an analyst with Barclays Capital in London, said in an interview Sen with Owen Thomas on Bloomberg Television’s “Countdown.”
Crude oil for January delivery fell as much as $2.06 to $95.61 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.93 a barrel at 10:47 a.m. London time. Front-month prices dropped 1.6 percent last week and are 5 percent higher this year.
http://www.bloomberg.com/news/2011-11-20/crude-futures-decline-as-much-as-0-4-to-97-30-a-barrel-in-new-york.html#
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