Oil slips on US recovery fears

31st August 2010, Comments 0 comments

World oil prices fell on Tuesday as investors fretted about the faltering US economic recovery ahead of the release of more key data later this week, analysts said.

New York's main contract, light sweet crude for delivery in October, shed 1.08 dollars to 73.62 dollars a barrel.

Brent North Sea crude for October delivery shed 93 cents to 75.67 dollars in morning deals.

"Oil prices continue to struggle as sentiment remains weak due to underwhelming economic data in the United States," said Westhouse Securities analyst David Hart.

"Fears of a further slowdown in economic growth and high stockpiles of supply will continue to keep a lid on prices."

Trader sentiment was battered late Monday by a report from the US Commerce Department that showed personal incomes rose just 0.2 percent in July, less than the predicted gain of 0.3 percent.

Markets were awaiting other crucial data this week, including industrial manufacturing numbers on Wednesday and key employment figures on Friday.

Both releases are widely expected to indicate an economic slowdown in the world's biggest energy-comsuming nation.


© 2010 AFP

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