The growth of US GDP did not stop fall of crude oil
The strong jump in gross domestic product of the United States failed to halt fall in oil prices. The price of energy raw materials fell below $ 73 a barrel due to the appreciation of the dollar and concerns that energy consumption in the largest economy in the world will remain lower than average this year. U.S. light crude for March delivery fell 75 cents, or 1 percent, to 72.89 dollars per barrel in late New York session today’s oil market. This is the lowest closing level for the last month as the price of oil was down during seven of the last eight sessions. International petroleum exchange in London Brent crude slipped by 67 cents, or 0.9 percent, to 71.46 dollars a barrel, sent Wall Street Journal. Initially, the price of oil soared to nearly $ 75 a barrel after news that the U.S. economy has grown with the record for the past six years 5.7 percent in the last quarter of 2009 but the economic expansion has so far not been able to increase energy consumption in the U.S. Demand for energy resources in the country is still less compared to prior year, while crude oil stocks increased in the last four weeks. It was clear from the data of the Ministry of Energy, which was published in mid-week. Moreover, the U.S. Dollar is rising by about a fourth day against the backdrop of stories about the financial problems of Greece, Spain, Portugal and Ireland which are associated with their large budget deficits. Appreciation of the dollar makes the price of oil higher, expressed in other currencies.
This reduces the interest of investors, who use currencies other than U.S. dollar for the purchase of energy resources. The price of oil has fallen by 2.2 percent this week compared with 4.4% decline the week before and 5.7 percent weekly decline for the second week of January.
Tags: Brent crude, crude oil, GDP, Gross Domestic Product, London, London Brent crude, strong jump, U.S., United States, USA