Crude Oil Prices Fall and Expected to Fall Further Next Week

August 19 00:00 2011

New York, August 19 – ( – Crude oil prices dropped in New York primarily because of the current stunted economic growth in the U.S., accumulation of supplies, slowing of manufacturing in the Philadelphia area, increase in jobless claims, the debt crisis in Europe, and a bleak outlook of the US economy. Gerrit Zambo, a trader at Bayerische Landesbank in Munich observed that crude oil prices could slide further next week due to the above factors.

There was a decline of 1.8 percent in futures and the crude supplies increased to 4.23 million barrels in the week ended Aug. 12, according to an Energy Department report. The crude oil prices are likely to stabilize at around $100 a barrel. The report has also indicated that the U.S. inventory for crude has risen to 354 million last week and the use of refinery has declined to 89.1 percent of its capacity from 90 percent.

Crude oil prices have also been hit badly by the report that the U.S. initial jobless claims have risen by 5,000 to 400,000 in the week ended Aug.13, and the continuing claims have risen by 12,000 to 3.7 million. Moreover, the general economic index of Federal Reserve Bank of Philadelphia came down to 2 in August from 3.2 in July. In the short term, crude oil prices are likely to fluctuate between $80 and $100.