Oil prices fell today because of an uncertain global economy which could hurt oil demands, following news of a weak economic status in China and Japan and the continuing eurozone debt crisis.
China’s manufacturing data showed evidence of a seventh straight quarter of slowing economic growth and Japan’s central bank’s tankan survey added to the gloomy state.
Brent futures fell 51 cents to $111.88 a barrel by 0630 GMT, while US crude futures slipped 67 cents to $91.53.
The fall has also been attributed to a stronger dollar, after the crude price posted its biggest three-month gain in one and a half years over supply risks in the Middle East and efforts by global central banks to stimulate weakening economies.
Banks in Spain will need $76.29bn of extra capital to strengthen its economy, adding to the weakening sentiment across commodities, equities and the euro, reports Reuters.
Image: Bank of Japan in Tokyo. Photo courtesy of: Fg2.