Oil rally fizzles
NEW YORK, United States
OIL and other energy prices sank yesterday after job worries sent a monthly measurement of consumer confidence sharply lower.
The Conference Board said its Consumer Confidence Index for February fell much more than expected as Americans became increasingly discouraged about job opportunities. Stocks and energy commodities dropped following the report.
Benchmark crude for April delivery lost US$1.45 to settle at US$78.86 a barrel on the New York Mercantile Exchange. In London, Brent crude fell US$1.36 to settle at US$77.25 a barrel on the ICE futures exchange.
Oil prices had been rising for more than two weeks as a steady drumbeat of reports suggested that manufacturing, home building and other pillars of the American economy were improving. But the US continues to struggle with high unemployment, and a slump in consumer confidence may lead to another summer in which Americans cut back on travel.
