Slow World Economy Sends Oil Prices Lower

In Asia on Monday, prices of oil decreased, going beneath $93 per barrel, as investors pondered whether or not a stalling growth in the world economy warranted an increase in price of crude in the prevailing month.

At the New York Mercantile Exchange, in Singapore, during electronic trading, December delivery’s benchmark crude decreased by 79 cents, as it ended up in a value of $92.53 per barrel during late afternoon. The contract of benchmark crude lost a total 64 cents on Friday, as it settled at a value of $93.32 in New York.

In London, at the ICE Futures Exchange, there was a 75 cents drop in Brent crude, as it finished in a value of $109.6 per barrel.

In the prevailing month, price of crude has increased. On the 4^th of October, crude was priced at $75, and ever since then, there has been a total of 24 percent increase in the price because of optimism in investors about the debt crisis, that the leaders of the European zone will come up with a solid plan to tackle the crisis and help the Greek nation avert default. In the previous week, lawmakers in the European Union made an agreement to decrease the debt level of Greece in the upcoming decade and also demanded the holders of bonds to accept half of the losses.

Traders have now shifted their focus towards the world economy, particularly that of Europe and the world’s largest economy of United States of America.

The possibility of another recession striking the world economy has been minimized and this is the reason why there are positive hopes amid investors and traders. In other Nymex trading, 2.5 cents were lost by heating oil, as it ended up in a value of $3.04 per gallon, whereas futures of gasoline decreased by 1.9 cents, as they ended up in a value of $2.63 per gallon. Moreover, there was 1.8 cents advancement in natural gas, as it ended up in a value of $3.94 per 1000 cubic feet.

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