Crude prices heading for another dip this week
19 Aug 2011
Prices of crude oil fell today, reversing a rise on Wednesday and heading for a fourth weekly decline, on concern that slower economic growth will reduce fuel demand.
Brent oil, however, traded at a record premium to the US contract.
Oil in New York slipped below $80 a barrel for the first time in a week as Citigroup Inc and JPMorgan Chase & Co cut their US growth forecasts amid a slowing economy and the struggle to stem Europe's sovereign debt crisis.
Futures pared losses as the dollar weakened, making commodities more attractive as an alternative investment.
Crude oil for September delivery dropped 69 cents, or 0.8 per cent, to $81.69 a barrel at 9:05 am on the New York Mercantile Exchange. Prices are down 4.3 per cent for the week. The more actively traded October contract fell 57 cents, or 0.7 per cent, to $81.94.
Brent oil for October settlement rose 74 cents, or 0.7 per cent, to $107.73 a barrel on the London-based ICE Futures Europe exchange.
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