Oil Falls Below $93 Amid Slowing Global Economy

SINGAPORE (AP) - Oil prices fell below $93 a barrel Monday in Asia as investors mulled whether slowing global economic growth justified a surge in crude this month.

Benchmark crude for December delivery was down 79 cents at $92.53 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 64 cents to settle at $93.32 in New York on Friday.

Brent crude was down 75 cents at $109.6 a barrel on the ICE Futures Exchange in London.

Crude has soared this month - up 24 percent from $75 on Oct. 4 - amid investor expectations European leaders would soon announce a plan to contain Greece's debt crisis. Last week, EU policymakers said they agreed to lower Greece's debt level over the next decade and require bondholders to accept 50 percent losses.

Traders are now turning their attention to the global economy, especially to weak growth in the U.S and Europe.

"We still have a crisis," United Arab Emirates Energy Minister Mohamed bin Dha'en Al Hamili told reporters at an energy conference in Singapore. "There's growth in world oil demand, but it's a very fragile situation."

Al Hamili said crude prices between $80 and $100 a barrel are reasonable and that lower prices would undermine investment in the energy industry and hurt production capacity.

Other oil industry observers were more optimistic. Shell Chief Executive Peter Voser said he expects global economic growth to slow this year from last year but to avoid a contraction.
"I don't see a double-dip recession," Voser told reporters in Singapore. Oil demand in Asia may "slightly slow down in 2012, but it's clearly going to be the growth engine of the world for many years to come."

Investors will be closely watching the latest employment figures scheduled to be announced Friday for signs about the strength of the U.S. economy. Gross domestic product grew 2.5 percent in the third quarter, allaying fears of a recession, but consumer confidence is at its lowest in almost three years.

Some analysts expect the jump in crude in October will push gasoline prices higher and undermine demand.

"The market has come a very long way in a very short amount of time," energy trader and consultant The Schork Group said in a report. "That is not to say it cannot go even farther, but it is to say that it has certainly gone far enough to start pinching consumers."

In other Nymex trading, heating oil fell 2.5 cents to $3.04 per gallon and gasoline futures slid 1.9 cents at $2.63 per gallon. Natural gas advanced 1.8 cents at $3.94 per 1,000 cubic feet.

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nyny767676

Someone please tell me why I just paid $800 to fill up my home heating oil tank. I am paying $3.94 per gallon for oil in NY. Remember election year is coming around the corner. Vote all there asses out of office.

October 31 2011 at 6:33 PM Report abuse rate up rate down Reply
Gumby

It is kinda stupid to say that oil prices fall because of weak economy.. Why cant oil prices fall because of strong economy in opposite? We can do that.. Oil investors want oil prices to go up to freeload on strong economy,, do you want that , too? How do you keep oil prices down if the economy is strong? any ideas?? nobody? We can do that ... of course! High oil prices are always a drag, you know~??

October 31 2011 at 6:19 PM Report abuse -1 rate up rate down Reply
seattlewkr

Yet gas prices continue to cripple households.

October 31 2011 at 4:32 PM Report abuse rate up rate down Reply
STAN

1.38 -0.03 (-2.13%)
Quote as of 3:45 PM EDT on 10/31/11
Euro vs US Dollar
CURRENCY:EURUSD

Okay, lets see some oil prices dropping, you say it does when this happens!

October 31 2011 at 4:07 PM Report abuse rate up rate down Reply
harryq1

The oil idiots will keep the world in the hole by ******* up every dollar they can.

October 31 2011 at 3:14 PM Report abuse rate up rate down Reply
GENE

So why am I still paying $3.80 a gallon in CT. ? The answer is, it is a democratic state. We have a rolling tax on gas, when the price goes up so does the tax. but the tax does not go down, when oil drops. More of tax and spend.

October 31 2011 at 2:10 PM Report abuse +2 rate up rate down Reply
1 reply to GENE's comment
daballofire

What was the price ofoil when Obama was elected? You elect ans oil hating regiem and this is what you get. No suppy = high prices. With speculation you get even hogher prices.

October 31 2011 at 2:29 PM Report abuse +1 rate up rate down Reply
goldaxe

This overpriced oil sure makes them fat overpaid ceo oil barrons and greedy insiders happy,along with our terroristic pals all over the world.

October 31 2011 at 2:07 PM Report abuse rate up rate down Reply
1 reply to goldaxe's comment
daballofire

Oil ceos and oil insiders have noithing to do with the price of oil - none, nada, zippo, zilch. Speciulators, middle east and nigerian terrorists do though.

October 31 2011 at 2:33 PM Report abuse rate up rate down Reply
daballofire

Italian Bonds are still over 6% which means - No one is buying the EU bailout - at least not yet. Hope you are short the market until Wednesday.

October 31 2011 at 12:48 PM Report abuse +1 rate up rate down Reply
cpo1514

Hey Barry... drill inthe USA and open the refineries YOU CLOSED with Barbara Boxer & her ilk and oil would be 60 / barrel. Time for you to resign or are you not done wrecking America???

October 31 2011 at 12:43 PM Report abuse +2 rate up rate down Reply
1 reply to cpo1514's comment
daballofire

Yes, the entire energy crisis and the resulting financial crisis in the USA has been caused by the the political left. There can be no doubt about it. IF the Messiah and his apostles are not tossed out of Washington after the 2012 elections, tarred and feathered, then we are boomed - if we can live that long.

October 31 2011 at 12:51 PM Report abuse +4 rate up rate down Reply
1 reply to daballofire's comment
daballofire

Maybe doomed instead?

October 31 2011 at 12:53 PM Report abuse +2 rate up rate down
johnskii

How long can a commodity be artificially priced until the bubble bursts? It happened before and WILL happen again.

October 31 2011 at 12:41 PM Report abuse rate up rate down Reply