Mixed economic data sees oil prices dip slightly

4 September 2009

The price of crude oil dipped below $68 (€47.64) a barrel on Thursday as investors remained cautious over the prospect of any speedy economic recovery.

Confidence was boosted early in the day as US figures revealed that retail sales in the world's largest consumer country increased during August.

The data prompted gains in the stock market that helped push up oil prices, while a weaker dollar also encouraged buying from overseas traders.

However, having reached an intra-day high of $69.40, crude values were soon driven back down on the back of disappointing news from the labour market.

Statistics showed the number of US jobless claims increased during the week to August 22nd, fuelling concerns about the strength of any economic recovery.

US crude for October delivery eventually settled at $67.96 a barrel, down nine cents on the previous day, while London Brent crude dropped 54 cents to close at $67.12.

The losses mean values have now fallen by more than six per cent during the course of past week.

And according to analysts surveyed by Bloomberg, the downward trend looks set to continue this month, with demand for crude and heating oil likely to be weak in September.

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