The price of crude oil was slightly changed near an eight-week low on the assumption that the global recession will weaken demand for fuel and raise stockpiles, Bloomberg reported.
Crude oil for August 2009 delivery was at $59.83 a barrel, down $0.06, in after-hours electronic trading on the New York Mercantile Exchange at 10.43am in Singapore. The contract dropped 0.9% to $59.89 on 10 July, the lowest settlement since May this year.
The International Energy Agency said on 10 July that oil and fuel inventories among the members of the Organization for Economic Cooperation and Development rose in May 2009 to about 7% more than last year. The dollar dropped on 13 July against the euro, spurring some investors to buy oil as a hedge against inflation.
Oil last week capped its biggest weekly drop since January 2009 as US consumer confidence fell and fuel stockpiles in the country rose for a fourth week.
On 30 June New York oil touched an eight-month high of $73.38 a barrel. Prices were up 37% in the previous two months as rising equity markets emboldened investors and the falling US dollar steered funds into commodities.