Michael Galvis: Oil Prices fall over concerns about a Recession.

NEW YORK (CNNMoney.com) — Oil prices fell Monday as investors remained concerned about a deepening recession and its impact on global demand for energy.

Light sweet crude for March delivery was down 41 cents to $41.27 a barrel at 1:40 p.m. ET, and had fallen as far as $39.83 earlier in the session.

Crude oil prices have fallen more than $100 a barrel since the summer months, when oil topped $147 a barrel, as the weakening economy dragged down demand for energy.

“The economy is slowing more than expected, and we might see further decline in demand for fuel,” said Antoine Halff, deputy head of research with trading firm Newedge USA.

Spending on construction in the U.S. fell for the third straight month in December, the government said Monday.

The government is also expected to report this week that the unemployment rate rose to 7.5% in January. Last Friday, another government report showed that GDP fell 3.8% in the fiscal fourth quarter.

The market is going to keep worrying about the economy and falling demand “for the foreseeable future,” said Halff.

Strike worries recede: Also easing oil prices was the postponement of a possible oil strike by U.S. oil workers seeking a new labor contract.

Click Here to Continue Reading.


Tags: , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: