Gulf Oil and Gas accountACCOUNT

Brent Crude Drops Below $98 on Weak Economic Data

Source: Reuters 6/4/2012, Location: Middle East

Brent crude prices traded below $100 for the second straight session, pressured by fears of a global economic slowdown following weak U.S. and Chinese economic data. Brent crude for July delivery dropped nearly $1 to $97.51 by 0231 GMT, matching a low touched in February 2011.

U.S. crude fell 89 cents to $82.34 a barrel after tumbling to as low as $81.89 earlier in the session, the lowest since October 2011.

Data on Friday showed U.S. job growth stumbling in May, causing the country's unemployment rate to rise for the first time in nearly a year. China also added to the gloom, reporting a slowdown in the country's manufacturing sector.

"The market is digesting all the bad data that came out last week," said Tony Nunan, a Tokyo-based risk manager at Mitsubishi Corp. "Brent at $100 was a strong psychological support and we just blew through that. So now I think people will be taking their money out of risky assets because everybody is afraid to pick a bottom."

In May, both Brent and U.S. crude posted their biggest monthly losses since late 2008, as global economic concerns offset fears of a possible disruption to Iranian oil supplies due to Western sanctions against Tehran. Investors remained cautious over the escalating financial turmoil in Europe.

Spanish Prime Minister Mariano Rajoy on Saturday called for the establishment of a central authority that would oversee and coordinate fiscal policy in the euro zone. Germany also wants a big leap forward in euro integration, but investors are doubtful whether the close integration could restore market confidence.

Traders are closely watching several monetary policy meetings due this week, including the European Central Bank and Bank of England on Thursday, for clues on their responses to vulnerable global growth.

U.S. Federal Reserve Chairman Ben Bernanke on Thursday will testify before a congressional committee about the state of the U.S. economy.

Financials and Investment News in Saudi Arabia >>

Brazil >>  8/15/2019 - MODEC, Inc. (MODEC) is pleased to announce that an affiliate of MODEC has issued a project bond in the international capital markets outside Japan to ...
Saudi Arabia >>  8/12/2019 - Saudi Aramco announced for the first time its half-year financial results. The Company’s net income was $46.9 billion for the first half 2019, compare...

Egypt >>  8/7/2019 - The Dubai Financial Services Authority (DFSA) signed a memorandum of understanding (MoU) with the Central Bank of Egypt (CBE) to enhance the relations...
Iran >>  8/6/2019 - A meeting was held to expand joint cooperation between Petropars Group and Bank Melli Iran at the presence of Engineer Hamid-Reza Masoudi. A meeting w...

Cameroon >>  7/30/2019 - Tower Resources plc, the AIM listed oil and gas company with its focus on Africa, is pleased to announce an extension of its Bridging Loan Facility ("...
Falkland Islands >>  7/30/2019 - Rockhopper Exploration plc (RKH), the oil and gas company with key interests in the North Falkland Basin and the Greater Mediterranean region, is plea...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Saudi Arabia Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |

More News

Related Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.