Crude oil headed for its biggest weekly decline since January 2009 on concerns that a prolonged global recession will weaken energy demand, Bloomberg reported.
Crude oil for August 2009 delivery dropped $0.05 to $60.36 a barrel on the New York Mercantile Exchange at 12.47pm in Singapore, poised for a fourth week of declines. Futures gained 0.5% to $60.41 yesterday, snapping six days of losses.
Oil declined 9.5% this week on the assumption that fuel consumption in the US would stay subdued. Gasoline stockpiles rose over the Independence Day weekend, a report showed. Yesterday futures hit $59.25 a barrel, the lowest intraday price since the start of 2009.
The dollar rose against the euro, sinking the appeal of commodities as a hedge against inflation. The dollar traded at $1.3987 a euro at 12.45pm in Singapore, up from yesterday's close of $1.4020 in New York. It was a little higher against the Japanese currency at 93.06 yen, from 92.90 yen.
Oil may drop in the coming week on the assumption that the global recession and payroll cuts will limit demand and bolster US supplies, a Bloomberg News survey of analysts revealed.
Nineteen, or 46%, of 41 analysts surveyed said that futures would drop. Nine expect the market to change little and 13 forecast that oil prices would rise.