NEW YORK – Crude oil prices back down to the level of $ 77 per barrel in trading Wednesday (20/1/2010) local time. The investors in the oil markets respond to a number of global sentiment toward, particularly the Dow Jones index drop on Wall Street, as well as concerns about China’s economy. On the other hand, the strengthening of United States dollars (U.S.) come to give the impact of oil price weakness this time.
As quoted by AFP on Thursday (21/1/2010) crude oil prices for February delivery contract fell $ 1, 4 to $ 77, 62 per barrel in trading for the contract last February the New York Mercantile Exchange (NYMEX). While in London, the price of Brent crude for March contract fell $ 1, 31 to level USD76, 32 per barrel on the ICE Futures.
U.S. stock markets tumbled as the banking concerns that the U.S. economy is still fragile and require a long time to recover. U.S. dollar also rose against major currencies other world, so the price of oil becomes expensive for investors who use currencies other than U.S. dollars.
Meanwhile, palm oil prices first fell on Wednesday trading, triggered by a report from the State Bamboo Curtain, China’s government says China to tighten policy further to avoid the risk of bad debts, banking.
China is the largest oil consumption country in the world, and economists expect this year was the demand of China oil consumption increases. However, these government-related measures, leading to fears that the economic recovery in China is still doubtful.
