Oil investment slides down, as Chinese demand falters
Crude oil prices retreated further in the US today, as Chinese authorities reported weaker than expected industrial growth. Continuous worries surrounding the euro zone and its massive debt also kept oil investment lower for the day.
Crude futures continued to slide down the charts despite some optimism stemming from improving consumer confidence in the US. Commodity prices have spent the bulk of the past two weeks in negative territory, as all environmental cues pointing to the fact that oil investment will not rebound in the near future.
Representatives from the International Energy Agency however, seemed unfazed by the severe drop-off in crude prices, stating that demand would rebound as the year moves along, and the economic woes of Europe abate. Yet both US and foreign traders showed trepidations with the high-risk fuel, choosing instead to gear their investment strategies toward safer havens.
West Texas Intermediate crude oil prices for delivery in June slid down 95 cents to $96.13 per barrel in New York. The contract has been moving further and further away from the coveted and resistant $100 per barrel mark that it had conquered just months before.
On the ICE Futures Exchange in London, Brent prices for June settlement fell 42 cents to settle at $112.26 per barrel. The spread between the two benchmarks currently sit at $16.13 per barrel.
Along with the financial troubles of the US and Europe, China has reported a drop in demand for the fuel, the first such drop in more than three years. That fact was perhaps the largest contributing factor for crude oil investment for the day.
The euro has also been losing steam on the currency index, affecting crude futures accordingly. The two are directly proportional when it comes to momentum and fluctuation.