Oil near US$112 amid slowing US economic growth
SINGAPORE (AP) — Oil prices fell to near US$112 a barrel Friday in Asia as slowing US economic growth blunted crude’s 33 per cent gain over the past two months.
Benchmark crude for June delivery was down 53 cents at US$112.33 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
The contract added 10 cents to settle at US$112.86 on Thursday and reached US$113.97 during in the session, the highest since September, 2008.
In London, Brent crude for June delivery was down 63 cents to US$124.39 a barrel on the ICE Futures exchange.
Investors have been looking for signs that this year’s surge in energy costs and a slowing US economy will start to undermine consumer demand. US gross domestic product grew an annualised 1.8 per cent in the first quarter, down from 3.1 per cent growth in the fourth quarter.
But so far, it appears US gasoline demand remains strong. The Energy Department’s Energy Information Administration said Wednesday that gasoline supplies fell last week for a third consecutive week.
Meanwhile, witnesses and human rights groups said Thursday that Syrian army units have clashed with each other during a crackdown on anti-government protesters.
More than 450 people have been killed across Syria and hundreds detained since the popular revolt against President Bashar Assad began in mid-March.
“Syria only produces 400,000 barrels of crude oil a day, 0.5 per cent of the world total,” Capital Economics said in a report. “However, a prolonged and violent political crisis in Syria will affect investment and tourism in the region overall, and add upward pressure on oil prices.”
In other Nymex trading in May contracts, heating oil fell 0.4 cents to US$3.23 a gallon and gasoline dropped 0.8 cents to US$3.42 a gallon. Natural gas June futures were down 0.3 cent at US$4.57 per 1,000 cubic feet.
