OIL FALLS TO $79 ON CONCERNS OVER U.S. ECONOMY
Baku, January 15 (AZERTAC). Oil fell to just above $79 a barrel on Friday and was set for its first weekly drop in more than a month on disappointing economic data and expectations for reduced heating demand in the United States, Reuters reports.
U.S. retail sales declined in December for the first time in three months, the Commerce Department said on Thursday, while Labor Department data showed more people sought jobless benefits last week.
Prices edged up briefly a day earlier after U.S. regulators announced proposals to put a cap on the size of positions dealers can hold, aiming to limit speculation, which traders considered not as stringent as feared.
U.S. crude oil futures for February delivery fell 35 cents to $79.04 a barrel at 0506 GMT. Prices, which have fallen every day this week, have shed about $5 from a 15-month intraday high of $83.95 on Monday, and touched a 2010 low of $78.37 two days ago.
The new front-month March contract for London Brent crude slid 47 cents to $78.10.
"The fundamentals are weak," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd. "U.S. economic data is not really improving much and this may push down NYMEX prices to below $78."
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