Oil fell in New York as investors speculated a rally to the highest level in four months was exaggerated amid concern the global economic recovery may falter, curbing fuel demand.
Futures dropped as much as 0.5 percent after rising 1 percent yesterday, the most in two weeks. Singapore’s exports slid the most in 14 months in December and Australian employers unexpectedly cut payrolls, reports showed today. Crude demand is “not in good shape,” United Arab Emirates Oil Minister Mohamed Al-Hamli said as the Organization of Petroleum Exporting Countries reduced output to the lowest in more than a year.
“The oil market has been trying to reach new highs but is being met by profit taking,” said Ken Hasegawa, an energy trading manager at Newedge Group in Tokyo, who estimated investors have a near-term target of $95 a barrel for New York crude. “Fundamentally the market is not strong enough to get there yet, but yesterday’s news of OPEC cutting production in December was good support.”
Oil Drops From Four-Month High on Concern Demand Growth May Slow - Bloomberg
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