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Business Title: Crude Oil Heads for Its Biggest Quarterly Decline in New York Since 2008 Oil fell, heading for its largest quarterly decline in New York since the 2008 financial crisis, as signs of slowing growth in China, the U.S. and Germany heightened concerns that fuel demand will suffer. West Texas Intermediate futures have fallen 15 percent this quarter, the biggest drop since the three months ended Dec. 31, 2008. Chinese manufacturing fell for a third month, according to data from HSBC Holdings Plc, while Germany’s Federal Statistics office said retail sales declined the most in more than four months in August. U.S. consumer spending slowed in August as incomes declined, the Commerce Department said today. WTI’s discount to Brent oil narrowed for a sixth day, the longest streak since March 2010. “There is a risk of slowdown in Chinese demand,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt, who forecasts Brent prices at $100 in the next quarter. “The risks to the forecast in the fourth quarter and for 2012 as a whole are to the downside.” Crude for November delivery on the New York Mercantile Exchange fell as much as $1.59, or 1.9 percent, to $80.55 a barrel and was at $80.64 at 1:52 p.m. London time. WTI is down 9.2 percent this month. Brent oil for November settlement fell $1.57 to $102.38 a barrel on the ICE Futures Europe exchange in London. Prices are down 9 percent this quarter. Brent’s premium to WTI futures narrowed to $21.74 a barrel from $21.81 at settlement yesterday. The spread climbed to a record of $26.87 on Sept. 6 as fighting in Libya reduced the availability of light, sweet crude, or oil with low density and sulfur content. Libya is now producing 300,000 barrels a day of oil, said Ali Tarhouni, the official in charge of the North African nation’s finance and oil ministries, speaking to reporters in Tripoli yesterday. Oil may fall next week on concern that Europe’s economy is showing signs of a slowdown as governments struggle to contain their fiscal crisis and avert a Greek default, according to a Bloomberg News survey. Thirteen of 28 analysts, or 46 percent, forecast oil will decline through Oct. 7, while eight respondents, or 29 percent, predicted prices will increase. Greek Prime Minister George Papandreou will meet French President Nicolas Sarkozy today in Paris after seeing European Union President Herman Van Rompuy in Warsaw. European leaders next week will discuss a permanent rescue fund after German lawmakers approved an expansion of the temporary European Financial Stability Facility. Post Comment Private Reply Ignore Thread |
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