Share

Oil slips as fuel costs threaten demand

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.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders