Oil prices inched lower in Asian trade today as weak US consumer data and the Euro Zone’s financial woes dragged on the sentiment ahead of a key OPEC meeting later in the day.
New York’s main contract, light sweet crude for delivery in July, was down 23 cents at $82.39 a barrel and Brent North Sea crude for July delivery shed 24 cents to $96.89 in the morning trade.
Retail sales in the United States fell for a second consecutive month in May, the government said yesterday, a worrying sign that consumers are cutting back spending that fuels most of the economy.
Retail sales fell 0.2 per cent, following a revised 0.2 per cent decline in April, the Commerce Department said.
Oil markets were also under pressure over heightening concerns about the Euro Zone debt crisis, ahead of crucial elections in debt-wracked Greece on Saturday.
Dealers fear a victory for anti-austerity parties that could lead to Athens tearing up a bailout deal, which in turn would likely lead it to exit the Euro Zone.
Investors will also be closely watching a policy meeting of the Organization of the Petroleum Exporting Countries (OPEC) later today in Vienna.
The cartel — which supplies about a third of the world’s crude supplies — will decide whether to change their output target of 30 million barrels per day.
Some members, including Libya and Ecuador, have voiced concerns that the cartel was pumping too much oil and therefore depressing prices.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.