Current Oil Price Dropped Close to $87
The current oil price fell close to $87 per barrel in the midst of concerns regarding the future growth of the global economy.
In the NYMEX trading, the U.S. benchmark for delivery in May was $1.51 lower to a crude price per barrel of $87.21. The contract gained 1 cent during the previous trading day.
Crude posted a sharp decline last week partly because of a wide sell-off in commodities, including gold, which recorded its largest single-day fall in three decades, mainly due to lower than anticipated quarter one growth in China.
The IMF recently lowered its forecast for the growth of the global economy this year from January’s outlook of 3.5 percent to only 3.3 percent. The agency anticipates the growth of the U.S. economy at 1.9 percent this 2013, a lower outlook versus the 2.1 percent it estimated last January. Moreover, the combination of economies of the 17 European nations is also expected to drop 0.3 percent this year.
Furthermore, investors are waiting for new information on the supplies of crude and that of refined commodities in the United States.
Data for the April 12 week is anticipated to post an increase in stocks of 1.25 million crude barrels and a draw in gasoline supplies of 1.1 million barrels, according to the poll of market analysts.
Brent, the benchmark used to assign prices to international oil types, was $1.10 lower to $98.81 per barrel in London’s ICE Futures Exchange.
Analysts expect that Brent will not likely stay lower than $100 for a long time.