ECONOMY
Oil Falls in New York; Set for Biggest Weekly Decline Since December 2008
Baku, May 6 (AZERTAC). Oil fell for a fifth day, heading for its biggest weekly decline since December 2008 after reports indicated economic weakness in the U.S. and Europe.
Crude slid more than $5 a barrel in New York to its lowest since Feb. 22 before a Labor Department report that may show the U.S. generated fewer jobs in April than in March. Yesterday jobless benefit applications in the U.S. showed a surprise increase and German factory orders unexpectedly slowed. Goldman Sachs Group Inc. said oil prices may drop further if “economic data releases in coming days continue to disappoint.”
Crude for June delivery dropped as much as $5.17, or 5.2 percent, to $94.63 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $97.80 at 12:03 p.m. London time. Oil has plunged 14 percent this week, the largest weekly slump since the period ending Dec. 19, 2008.
Yesterday, futures in New York fell $9.44, or 8.6 percent, to $99.80, the lowest price since March 16 and the biggest percentage drop since April 20, 2009.
Brent crude for June settlement fell as much at $5.65, or 5.1 percent, to $105.15 a barrel on the London-based ICE Futures Europe exchange. Yesterday, it plunged $10.39, or 8.6 percent, to $110.80, the lowest since March 16.
The London contract has fallen 13 percent this week. That would be its biggest weekly decline since Dec. 5, 2008. Brent`s premium over the U.S. benchmark, West Texas Intermediate, rose for the second time in a week, to $11.42 a barrel.
Applications for jobless benefits in the U.S. jumped by 43,000 to 474,000 in the week ended April 30, Labor Department figures showed. Economists in a Bloomberg News survey estimated they would fall to 410,000. A report today may show employers in the world`s largest economy hired 185,000 additional workers in April, compared with 216,000 in March.
Oil has gained 10 percent in New York this year as unrest in the Middle East and North Africa toppled leaders in Tunisia and Egypt and spread to Libya, Algeria, Bahrain, Iran, Oman, Syria and Yemen.
