Oil slides further on global demand concerns
Singapore – Oil fell further in Asian trade Monday as worries about demand weighed on investors still spooked by weak economic data from the US and China, analysts said.
Brent North Sea crude for July shed 74 cents to $97.69, and New York’s main contract, West Texas Intermediate (WTI) crude for July, fell 78 cents to $82.45, a price last seen in October.
Both contracts had closed lower Friday in reaction to weak US jobs data.
Brent oil prices had already slumped by 15 percent during May, while WTI collapsed by almost 18 percent.
“Energy markets have suffered the triple whammy of weak economic growth (US, China and Europe),” said Justin Harper, market strategist at IG Markets Singapore in a note.
Depressed purchasing manager surveys for May in India, China, the United States, eurozone nations and other countries all spelled slower economic growth globally, taking the air out of expected oil and fuels demand.
On top of that came Friday’s release of the US monthly employment report for May, which showed a sharp decline in job creation.
The US economy added just 69,000 jobs in May, less than half of what was expected, with the unemployment rate rising to 8.2 percent.
Household income and spending data released last week also showed Americans – the world’s top oil consumers – tapping more into their savings, a likely signal of more strain on spending increases.
