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| Oil extends losses on economic concerns |
| AFP/PTI / Singapore Jun 29, 2009, 09:41 IST |
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Oil slipped further in Asian trade today as investors continued to worry over the state of the US economy, the world's biggest energy user, analysts said.
New York's main contract, light sweet crude for August delivery dropped 70 cents to $68.46 a barrel while Brent North Sea crude for August delivery sank 68 cents to $68.24.
Both contracts closed lower Friday.
"Oil pricing is under pressure from concerns regarding the weak oil demand in the US," said Victor Shum, a Singapore- based analyst with energy consultancy Purvin and Gertz.
Crude fell at the end of last week during US trading hours after official data released Friday showed spending by American consumers rose a weak 0.3 per cent in May from April, supported mainly by a massive government stimulus.
Personal savings rate shot up to a 16-year high, indicating consumers were wary of spending amid rising unemployment and plummeting home values, the data showed.
The report by the Commerce Department is widely watched because consumer spending accounts for two-thirds of US economic activity and is considered key to recovery from the severe recession that began in December 2007.
Crude prices have spiked up in recent weeks, boosted in part by the weak $ which means lower oil cost for purchasers using foreign currencies.
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