Oil prices slip on weak demand
London: World oil prices fell on Thursday as
traders took profits from the previous day's gains and fretted
over the outlook for weak demand, analysts said.
New York's main contract, light sweet crude for delivery
in December sank 45 cents to USD 79.95 a barrel.
Brent North Sea crude for December delivery shed 50 cents
to USD 78.39 in London trade.
The US Federal Reserve yesterday held rock-bottom
interest rates for "an extended period" and kept
trillion-dollar stimulus measures in place to support
a fragile recovery from recession.
As expected, the Fed held its key federal funds rate at a
historic low of zero to 0.25 per cent, where it has been since
last December to help pull the economy out of the worst
downturn since the Great Depression.
The US central bank added that "although economic
activity is likely to remain weak for a time," its policy
actions would support the recovery.
"The Fed is not pointing at any strong demand recovery
and the US oil statistics are saying the same thing," said
Petromatrix oil market analyst Olivier Jakob.
"US demand for petroleum products has been very stable
for the last five month and while stability is better than
continued erosion it is not yet showing any sign of rebound,"
he warned.
Prices eased today after briefly breaching the USD 81
mark in New York yesterday, reflecting concerns over demand,
analysts said.
Bureau Report