Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Tuesday, April 27, 2010 at 12:22 PM

Comments (0)     E-mail E-mail article      Print Print      Share Share

Oil slides to near $82 in Asia on Greece debt woes

Oil extended its losses, sliding to near $82 a barrel Wednesday in Asia amid concerns over the global economy recovery and expectations of rising crude inventories in the U.S.

Associated Press Writer

KUALA LUMPUR, Malaysia —

Oil extended its losses, sliding to near $82 a barrel Wednesday in Asia amid concerns over the global economy recovery and expectations of rising crude inventories in the U.S.

Benchmark crude for May delivery was down 19 cents to $82.25 a barrel at midday Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The contract lost $1.76 to settle at $82.44 on Tuesday.

Crude's slide follows falls in Asian stock markets Wednesday, dampened by the eurozone debt crisis after Standard and Poor's downgraded the debt of Greece and Portugal. Concerns are mounting that the problems could damage the global economic recovery and hurt oil demand.

"The eurozone debt crisis is driving markets down. It looks like $80 a barrel is a strong floor for crude in the near term," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore.

Crude's bearishness is also partly due to expectations that the U.S. government's inventory report due later Wednesday will show a further rise in crude oil and gasoline stocks, he said. A report by the American Petroleum Institute late Tuesday showed gains in crude and gasoline inventories, piling pressure on the market, he said.

Traders are also waiting to see the outcome of the Federal Reserve's two-day meeting Wednesday.

The Fed is expected to leave interest rates at record lows but the question is whether it will take steps to reduce the unprecedented amount of money it pumped into the economy to fight the Great Recession. The economy is getting better, but unemployment remains near double digits and is expected to stay high all this year.

Any Fed move also could drive the dollar higher and that too can affect oil prices. A stronger dollar makes crude more expensive for investors holding other currencies.

In other Nymex trading in May contracts, heating oil fell 0.18 cent to $2.2285 a gallon, and gasoline dropped 0.53 cents to $2.3215 a gallon. Natural gas rose 1.4 cent to $4.23 per 1,000 cubic feet.

E-mail E-mail article      Print Print      Share Share

More Business & Technology

UPDATE - 09:46 AM
Exxon Mobil wins ruling in Alaska oil spill case

UPDATE - 09:32 AM
Bank stocks push indexes higher; oil prices dip

UPDATE - 08:04 AM
Ford CEO Mulally gets $56.5M in stock award

UPDATE - 07:54 AM
Underwater mortgages rise as home prices fall

NEW - 09:43 AM
Warner Bros. to offer movie rentals on Facebook

More Business & Technology headlines...

Comments
No comments have been posted to this article.

advertising


Get home delivery today!

Video

Advertising

AP Video

Entertainment | Top Video | World | Offbeat Video | Sci-Tech

Marketplace

Advertising