Pessimistic economic indicators in Europe, the U.S. provoke declines in oil investments

Crude oil prices dropped on the commodity index today, razing the gains they posted during yesterday’s session, after investors focused their attention on disappointing German bond sales instead of the shrinking inventories in Cushing, Oklahoma. Worse than expected durable goods orders in the U.S. also weighed down oil investments.

West Texas Intermediate crude futures for delivery in January declined $1.84 to end at $96.17 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude oil prices for January settlement lost more than $2 to settle at $107.54 per barrel on the ICE Futures Exchange in London.

The commodity oil spent the entire trading session in negative territory, spurred on by grim reports from the U.S. Labour Department, announcing a 2,000 climb in the nation’s jobless benefits claims. China’s disappointing manufacturing figures delivered a further hit to global oil investments. The prolific nation’s massive expansion efforts have been a major line of support for sinking raw commodity futures on the charts all year. Signs of financial weakening in both China and the U.S., the two largest economies in the world drove down global growth projections significantly, setting a pessimistic tone to the day’s trading.

The recent auction of Germany bonds also proved to be a partial failure. With more than 35% of the nation’s bonds left unsold, it has been one of the worst showings of demand since the euro was introduced to the area. Economists took the weak auction results as a sign that even Europe’s strongest economies, like Germany and France are beginning to succumb the region’s spiralling debt crisis.

The slow pace of global economic growth has been the primary issue holding down crude oil prices and oil investments this year. Though reports of low supplies of the fuel in the U.S. managed to curb some of the damage the commodity oil sustained on the charts today, it will not be able to pull crude out of this protracted slump.