Just in:  

You are here: Home»Markets»Energy»Europe»Oil prices drop amid weak US energy demand

Oil prices drop amid weak US energy demand

oil LONDON: Oil prices fell on Monday as weak energy demand and concerns over more fiscal battles in Washington tempered news of growth in the US jobs market, analysts said.


New York's main contract, light sweet crude for delivery in February shed 32 cents to $92.77 a barrel.


Brent North Sea crude for February dropped 35 cents to $110.96 in London midday deals.


Official data on Friday showed that the US economy generated 155,000 jobs in December, and the unemployment rate held at 7.8 percent.


However, a separate US government report last week showing softerfuel demand outweighed that news, Phillip Futures said in a market commentary.


Weaker US energy demand "added to bearish concerns about oil markets, which have been closely monitoring economic data for signals about consumption, which is under pressure because of the struggling economy", the broker added.


The United States is the world's biggest oil consuming nation and the health of its economy is a key influence on crude prices.


Other analysts said that markets remained concerned over more brinkmanship in the US Congress after last week's 11th-hour deal that averted the fiscal cliff of tax rises and spending cuts which threatened to tip the economy into recession.


While the lawmakers put off the huge tax rises on many wage earners, agreement on spending cuts was put off until the end of February, when they must also hammer out a deal to raise the country's borrowing limit.


Iran revealed that its oil exports had slumped by 40 percent in the past nine months because of tough Western sanctions.


"There has been a 40 percent decrease in oil sales and a 45 percent decrease in repatriating oil money," Oil Minister Rostam Qasemi was quoted as saying, in a reversal of his previous denials of any decline at all.


Qasemi made his comments to the Iranian parliament's budget commission, according to the ISNA news agency citing MPs.


The minister said the final figures for the current Iranian calendar year, which ends in March 2013, would show "a significant decrease" in crude export revenues, but he did not provide any numbers.


The admission by Qasemi was significant, given that he was one of the officials who up to now had been most adamant in claiming that Iran's crucial oil exports were entirely unaffected by US and EU sanctions.


The international sanctions targeting Iran are intended to choke the country's revenues used for its disputed nuclear programme, and to force it to the negotiating table.


Iran insists the programme is for purely peaceful purposes, and denies Western and Israeli allegations that it wants to manufacture nuclear weapons. It is forging on with uranium enrichment and says it will survive the Western pressure.


Copyright AFP (Agence France-Presse), 2013


Index Closing Chg%
Arrow DJIA 17,888.35 0.95
Arrow Nasdaq 5,156.31 0.93
Arrow S&P 2,102.63 1.07
Arrow FTSE 6,395.65 0.62
Arrow DAX 11,261.24 1.06
Arrow CAC-40 4,914.53 0.87
Arrow Nikkei 20,012.40 1.34
Arrow H.Seng 22,381.35 1.75
Arrow Sensex 26,169.41 0.09

Wholesale Camping Equipment from China at 

New 2015 adidas and Nike Soccer Cleats at Kicks Corner uk

Ad Asia 2015

Foreign Debt $62.649bn
Per Cap Income $1,512
GDP Growth 4.24%
Average CPI 8.6%
Trade Balance $-2.197 bln
Exports $1.729 bln
Imports $3.926 bln
WeeklyNovember 30, 2015
Reserves $19.828 bln