Oil Dips Below $95 Amid China Growth Concerns, Greek Turmoil

oil priceBy ALEX KENNEDY, Associated Press


SINGAPORE -- Oil prices fell below $95 a barrel Monday in Asia amid investor concern that China's economy, the world's second-largest, is slowing faster than previously expected.

Benchmark oil was down $1.33 to $94.80 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 95 cents to settle at $96.13 in New York on Friday.

Brent crude was down 86 cents at $111.40 per barrel in London.

Traders brushed off China's announcement Saturday that it plans to cut its bank reserve requirement by 0.5 percentage points. The move, the third reserve ratio cut since November, is designed to boost lending and spark economic growth.

However, investors are worried by signs that China's economy is faltering. The government said Friday that industrial production growth in April slowed and electricity output was little changed.

Investors are also eyeing political turmoil in Greece, where political parties have been unable to form a government after elections earlier this month.

Some analysts say the recent oil price slump -- crude is down more than 10% from earlier this month -- isn't being driven by global supply and demand fundamentals, but rather the old market adage about selling assets at the beginning of the summer months.

"There's little to the latest price action than the increasingly self-fulfilling prophecy of 'sell it in May and go away', with broader macroeconomic concerns used as a lightening rod," Barclays said in a report. "U.S. oil demand is improving while Asian demand remains robust."

In other energy trading, heating oil was steady at $2.96 per gallon and gasoline futures were little changed at $3.00 per gallon. Natural gas fell 1.6 cents at $2.49 per 1,000 cubic feet.

___

Follow Alex Kennedy on Twitter at http://twitter.com/alexkennedy_ap


Increase your money and finance knowledge from home

Professional Vs Do it Yourself Investing

Should you get advice or DYI?

View Course »

Behavioral Finance

Why do investors make the decisions that they do?

View Course »

Add a Comment

*0 / 3000 Character Maximum

17 Comments

Filter by:
smith65791

It's the speculators. We need more regulation.

May 15 2012 at 3:06 PM Report abuse rate up rate down Reply
.kowalski440mag

bs bs bs bs bs bs bs bs bs bs bs bs bs bs bs bs bs

May 15 2012 at 2:14 PM Report abuse rate up rate down Reply
Somey

joeproblemchild

If your like reach their utopian goal, we will all be the same class, except for those whom government chooses.

Gosh Somey, you are sounding more and more like a commie robot all of the time.
__________________________________________________________________

I am not a Koch Brother lackey

May 15 2012 at 1:18 PM Report abuse -1 rate up rate down Reply
aisha200bc

The crude oil prices are not plunging because of only Greece crises. The main problem is that in times when there is global rescission , and the major economies that are slowing down requires energy to uplift their manufacturing growth, but since the sanctions on Iran oil imports are causing the major hurdles and the unemployment figures that are rising over the globe is another alarming factor. The demand for crude oil is there but strict sanctions are restricting the economies to revive again. The demand for the commodity is there and its supply also, but when means to buy the commodity are restricted, then this is the out come. The energy prices, its demand and supply determine a lot of other factors---It is not only US that is facing the financial crises but many more other significant economies. But then what one can do if the authorities are causing hurdles and do not realize that with each passing day the situation will become worse if the sanction on Iran are not considered to be at least flexible------

May 15 2012 at 12:56 PM Report abuse rate up rate down Reply
1 reply to aisha200bc's comment
chris1011

Reasonable thoughts like yours are outliers here on this crazy blog.

May 15 2012 at 1:50 PM Report abuse -1 rate up rate down Reply
jdykbpl45

Gas prices up today. I blame Obama and his cronies: Reid, Pelosi, Geithner, Corzine, Bernake.

May 15 2012 at 11:59 AM Report abuse +1 rate up rate down Reply
capenv

Margaret Thatcher once said "the problem with socialism is that eventually it runs out of other peoples money".

May 15 2012 at 11:55 AM Report abuse +2 rate up rate down Reply
capenv

The only reason oil prices are falling is because of the upcoming presidential election and all the dem liberals involved in commodity trading want O'bama to look good in November.

May 15 2012 at 11:54 AM Report abuse +1 rate up rate down Reply
Somey

joeproblemchild and imalibnow2

Kochsian economics is far more destructive than socialism, because it destroys the middle class and will lead to SERIOUS social unrest.

May 15 2012 at 8:08 AM Report abuse rate up rate down Reply
darbrow717

You political freaks sure get off topic quick, and thats what they want, you sheep!!!

May 15 2012 at 8:03 AM Report abuse +1 rate up rate down Reply
Somey

imalibnow2

Here you are collecting SS and medicare which is a very socialistic thing to do and you’re preaching the extreme right wing gospel, which is totally detrimental to yourself.

YOU ARE TOTAL JOKE

May 15 2012 at 7:47 AM Report abuse -2 rate up rate down Reply