Crude oil price hits five-week low

04.08.11

Concerns over the US’s economic recovery meant that the price of oil hit its lowest for five weeks today. The US is the world’s largest crude oil customer. Report have shown that US industrial growth is slowing, and that crude is stockpiling, leading to the low trade price.

Ben Westmore, a minerals and energy economist at National Australia Bank, said:

“Market participants seem to be concerned about growth prospects in the US. [Reports of stimulus] may give a short-term reprieve to prices and forecast demand but if these weak numbers keep coming out it’s going to swamp any positive sentiment around further quantitative easing,” he said.

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