Oil prices dropped again on the assumption that energy and fuel demand may be restricted as the global economy makes a slow recovery from the worst recession since the Second World War, Bloomberg reported.
Crude oil for August 2009 delivery fell as much as $0.80, or 1.2%, to $68.36 a barrel and was at $68.62 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 10.25 am in Singapore.
The contract declined $1.07, or 1.5%, to $69.16 on 26 June 2009 after a report revealed savings in the US jumped to a 15-year high in May 2009, signalling a slow recovery in household spending.
The August 2009 contract dropped 1.2% the previous week, having reached a seven-month high of $73.90 on 11 June.
A report today in the US may show manufacturing in Texas continued on its second month of contraction this month.
The US National Hurricane Center said that storms over Mexico’s Yucatan Peninsula may wane as they drift north-west.
New York oil futures went up 55% this year, as rising world equity markets and a weaker dollar prompted investors to purchase the commodity as a hedge against inflation and to profit when demand recovered.
Brent crude oil for August 2009 settlement fell $0.61, or 0.9%, to $68.31 a barrel on London’s ICE Futures Europe exchange at 9.23am in Singapore.
According to US Energy Department data, stockpiles increased in the past two weeks, gaining 3.87 million barrels to 208.9 million in the week ended 19 June 2009. Total fuel consumption was down 5.5% to 17.9 million barrels a day the same period.