SINGAPORE (Thomson Financial) - World oil prices fell by more than a dollar
in Asian trade Monday amid fresh concerns energy demand would be affected by the
slowing US economy.
Concerns over the US economy, the biggest oil consumer, resurfaced after the
OECD reduced its US growth forecasts for the first half of this year and said
the world's largest economy is
teetering on the brink of recession.
In morning trade, New York's main oil futures contract, light sweet crude
for delivery in May, tumbled 1.41 dollars to 100.43 dollars per barrel.
The contract closed at 101.84 dollars on Thursday, at one time sinking to
below the 100-dollar level. Markets were closed Friday for a public holiday.
London's Brent North Sea crude for May delivery fell 1.03 dollars to 99.35
dollars per barrel, after settling at 100.38 dollars on Thursday.
"The 100-dollar mark is going to be a support level and prices may congest
around that level" as the market focuses on weakening demand out of the US, said
Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
The Paris-based Organisation for Economic Cooperation and Development (OECD)
said the US economy is now expected to grow 0.1 percent in the first quarter,
down from the 0.3 percent estimated in December, and would display zero growth
in the second, compared with 0.4 percent given previously.
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