Oil levitates near $103 despite EU Economy Worries

Despite increasing investors’ worries over the Europe’s debit crisis affecting economic growth and crude consumption, oil prices hovered close to $103 a barrel on 24th April, 2012 in Asia.

At midday Singapore time in electronic trading on the New York Mercantile Exchange, Benchmark oil to be delivered in June descend 13$ to $102.98. The contract fell 77 cents at $ 103.11 in New York on 23rd April, 2012. However, the prices of oil to be delivered in London climbed up 15cents at $ 118.87 per barrel.

The fiscal austerity measured designed to reduce European depth levels increased inventors’ concerns that such measures will instigate recession, as well in 2012. After a survey on 23rd April 2012, it depicts unpredictable dropped down of the eurozone’s manufacturing and services sectors in April 2012.

The chief economist at a Standard Chartered, Gerald Lyons said: “Developments in the euro area continue to drive sentiment.” and also pointed out: “The biggest threat facing the world economy is a collapse of one or more euro area economies.”

Crude prices have traded between $100 and $110 in 2012 because of the U.S. economy, which is found to be at more than expected pace letting other crude demand to fall down.

Some analysts are optimistic about the demand for crude in the U.S. and China, the world’s largest oil consumers, to jump back at normal condition. However, economic sanctions by Western powers against Iran will incise crude output from OPEC member as well tighten the global supplies.

Carl Larry at Oil Outlooks and Opinions said: “We are looking at the bottom in U.S. gasoline demand, the bottom of the Chinese slowdown and we are just starting to feel the pinch on Iranian sanctions.” He also remarked: “Outside of another economic meltdown, there’s not much that we can see that is going to bring this oil price back down.”

According to energy trading, heating oil fell down 0.4 cents at $3.14 per gallon and gasoline futures dropped down 0.4 cents at $3.14 per gallon. Natural gas shored up 1.2 cents at $2.02 per 1,000 cubic feet.

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