Loading...
See More

Oil slips as fuel costs threaten demand

Apr 07 2011 09:21 Sapa

Related Articles

'Turmoil to hit energy markets for years'

Oil slides on profit-taking

Oil speculators cash in: China exec

Oil scales peak on Mid-East worries

Oil hits 30-month high on unrest

Oil prices pull back

 

Singapore - Oil prices fell to near $108 a barrel on Thursday in Asia on concern rising fuel costs could undermine US economic growth and demand for crude.

Benchmark crude for May delivery was down 51c at $108.32 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract gained 49c to settle at $108.83 on Wednesday.

In London, Brent crude for May delivery was down 54c to $121.39 a barrel on the ICE Futures exchange.

Crude has traded near $108 this week as traders mull the impact of Libya's civil conflict, a weakening US dollar and China's fourth interest rate hike since October. Investors are also concerned a 29% jump in oil prices since mid-February will force consumers to spend more on fuel costs and will eventually undermine crude demand.

Regular unleaded gasoline in the US currently averages $3.69 a gallon, up 23% from a year earlier.

"The main worry is that with more of the consumer's budget going toward gas at the pump, it will hold back the nascent recovery," said Anthony Michael Sabino, a professor at St. John's University's business school. "It will put a crimp into spending plans for corporate America, as the costs of energy, transportation, and so forth rise accordingly."

In other Nymex trading in May contracts, heating oil fell 1.2c to $3.18 a gallon and gasoline dropped 1.4c to $3.18 a gallon. Natural gas futures were down 1.5c at $4.13 per 1 000 cubic feet.

commodities  |  markets  |  oil
NEXT ON FIN24X

Dollar, oil drag gold lower

2014-11-28 18:37

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Africa: Land of Billionaires!

Find out who are the richest of the richest in Africa!

 
 

Men24.com

Best bro movies 2014
Every man should be able to do these three things
Goalkeeper saves five penalties with his FACE!
Hottie of the day: Jesselyn

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...