Oil slips below US$39

LONDON: Oil prices fell below US$39 a barrel (US$1 = RM3.48) yesterday on a string of data confirming US economic downturn.

US crude for February delivery fell US$1.55, or about 3.7 per cent, to US$38.36 by 1628 GMT after falling 6 percent on Monday.

ICE Brent dropped by US$1.90 to US$39.55 a barrel.
The world’s top economy, the US, shrank an unrevised 0.5 per cent in the third quarter, official data showed. Consumer spending plunged 3.8 per cent, the biggest drop since 1980.

“The bears appear to be in control, aided by weak equity markets as the global economic slump offers a depressive ring to the festive period,” said Rob Laughlin, senior oil analyst at MF Global here.

“Crude oil markets were lower (on Tuesday) in generally thin conditions amid continuing news of lower global demand,” said analyst Nimit Khamar at the Sucden brokerage here.

“Given thin conditions and continuing concerns about the global economy, markets may drift lower until the end of this year but stay broadly within a range centred near US$40 a barrel.” — Agencies