Oil Prices Slide Due to Global Gloom Over Economic Outlook

oil pricesBy PABLO GORONDI

The price of oil slipped below $92 a barrel on Monday as closely watched surveys showed the global economy remains weak.

By early afternoon in Europe, benchmark oil for November delivery was down 47 cents to $91.72 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 34 cents to finish at $92.19 per barrel on the Nymex on Friday.

In London, Brent crude was down 79 cents to $111.60 on the ICE Futures exchange.

Japan's central bank on Monday released a survey that shows deepening pessimism over the economy among the country's big manufacturers. The Bank of Japan's quarterly "tankan" index was minus 3, a worsening from the previous quarter's minus 1.

The survey showed pessimism over the prospects for both domestic and global demand given weak growth in China, the U.S. and Europe.

Meanwhile, a survey by the China Federation of Logistics & Purchasing said its monthly index of manufacturing activity stood at 49.8 points on a 100-point scale. Numbers below 50 indicate a contraction. China's economic growth fell to a three-year low of 7.6 percent in the quarter ending in June.

Concerns that Spain's debt rating may be downgraded from investment grade to junk status added to the negative mood. Spain, which has the fourth-largest economy in the eurozone, is coping with its second recession in three years and has an unemployment rate near 25 percent.

Traders are now looking to upcoming jobs data out of the U.S. for a read on the health of the world's No. 1 economy.

"With Wednesday's presidential debates and the approaching election, we expect all eyes will be on Friday's non-farm payrolls data," said oil analyst Stephen Schork in an email commentary.

In other Nymex energy futures trading:

• Heating oil fell 2.58 cents to $3.1334 per gallon.

• Wholesale gasoline fell 0.72 cent to $2.9129 per gallon.

• Natural gas rose 7 cents to $3.39 per thousand cubic feet.


Pamela Sampson in Bangkok contributed to this report.

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k4jlp

Read up on your History and you will find the repeal of the Glass-stegle Act of 1933 in the year 2000 by Bill Clinton in his last weeks in the White House allowed crude/gas speculation/trading. It was pushed by Republican Phil Gramm of Texas. Thats when the huge transfer of wealth began in earnest.

October 01 2012 at 8:33 PM Report abuse rate up rate down Reply
Fred

If oil prices are going down, and gas stays up,its past time the FBI should check in to this.We lknow the oil companys are villians. These are some greety soulsThey can never make enought money.

October 01 2012 at 6:59 PM Report abuse rate up rate down Reply
Fred

If oil prices are going down, and gas stays up,its past time the FBI should check in to this.We lknow the oil companys are villians. These are some greety soulsThey can never make enought money.

October 01 2012 at 6:57 PM Report abuse rate up rate down Reply
yankeedoug1121

at $25.00 a barrel the big oil make 360 million a year in profits! so get this price back in that area and there won't be a global economic problem it's the greed of big oil that's been causing these economic problems

October 01 2012 at 6:54 PM Report abuse rate up rate down Reply
az1sunrize

I sure am sorry that free speech is not allowed on AOL

October 01 2012 at 6:52 PM Report abuse rate up rate down Reply
az1sunrize

I sure am sorry that free speech is not allowed on AOL

October 01 2012 at 6:51 PM Report abuse rate up rate down Reply
az1sunrize

We wouldn't be talking about this if we would open up drilling in the United States, we would be talking about all the jobs gained with the new drilling.

October 01 2012 at 6:51 PM Report abuse rate up rate down Reply
az1sunrize

We wouldn't be talking about this if we would open up drilling in the United States, we would be talking about all the jobs gained with the new drilling. Wake up, Obama don't want jobs he wants poverty for the whites like the poverty the democrats keep the blacks in. Are we that STUPID????

October 01 2012 at 6:50 PM Report abuse rate up rate down Reply
mebecarl

Who's the LIAR who's passing false information that prices are going down? Can't prove it by MY gasoline costs, especially here in CT!

October 01 2012 at 6:50 PM Report abuse rate up rate down Reply
az1sunrize

We wouldn't be talking about this if we would open up drilling in the United States, we would be talking about all the jobs gained with the new drilling. Wake up, Obama don't want jobs he wants poverty for the whites like the poverty the democrats keep the blacks in. Are we that STUPID????

October 01 2012 at 6:50 PM Report abuse rate up rate down Reply