Oil plunges to near $65 on fears recovery may lag
14:50, 6 July 2009
BAKU. July 6. KAZINFORM Oil prices plunged to near $65 a barrel Monday in Asia as dismal unemployment figures from the U.S. and Europe last week sparked investor concern about a nascent economic recovery, Associated Press reported, Kazinform cites Trend Capital.
Benchmark crude for August delivery fell $1.63 to $65.10 a barrel by midday Singapore time, after earlier dropping as low as $64.65, in electronic trading on the New York Mercantile Exchange. It last settled on Thursday at $66.73.
Trading was closed in the U.S. on Friday for the Independence Day holiday.
Oil has tumbled from an eight-month high above $73 a barrel last week after gloomy U.S. consumer confidence and jobs numbers fueled doubts about a rally that has doubled the price of crude since March.
"It's not looking too pretty in terms of economic data," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "The demand side fear is coming back into play", Kazinform refers to Trend Capital.