Oil Falls Below $96 As Economy Slows Globally

There have been continued concerns about the growth of the economy globally as a whole in part to much of the financial situation of the USA as well as many European countries.

By early afternoon in Europe the benchmark for oil per barrel was down $1.12 to as low as $95.96 on the New York Mercantile Exchange. Crude oil too was down quite a bit to $111.86 as well on ICE Futures exchange.

Ritterbusch and Associates had this to say on the matter,

“The energy market is vulnerable to additional negative guidance from the U.S. economy, a slowing in the Chinese economic growth engine and a renewed heightening in European debt worries.”

In April total global oil production totaled 91 million barrels a day as opposed to 87 million per day in April of last year. This increase however seems to be mostly from OPEC output according to the IEA.

Oil pices have slowly climbed back up to currently about $96.80 which is still down about 0.28 on the day. What remains to be seen is how prices will look at the close of the day.