Tuesday, 12 July 2011

China Sluggish Economy, Oil Prices Depressed

NEW YORK Oil prices fell Monday, pressured by increased market concerns China's economic slowdown and the euro zone debt crisis. New York's main contract, light sweet crude or West Texas Intermediate (WTI) for August delivery, closed at 95.15 dollars a barrel, down 1.05 dollars from Friday's close last week.

In London, Brent North Sea crude oil for August delivery slid 1.09 dollars to settle at 117.24 dollars a barrel. On Friday, the benchmark New York contract West Texas Intermediate shrunk almost 2.50 U.S. dollars after the release of June employment report concern in the United States, the world's largest oil consumer.

The development of the U.S. economy does not have much impact on job creation and the unemployment rate rose unexpectedly to 9.2 percent. "We not only see the hope of softening demand in the United States but also worldwide," said Phil Flynn, an energy analyst at PFGBEST.

China, the second largest oil consumer, Saturday, reported that drove inflation rates more quickly in June to 6.4 percent, its highest level in three years. Some analysts worried Beijing might go too far in tightening monetary policy to curb overheating in the economy.

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