US crude futures fall more than $2/bbl on weak economic news

08 June 2012 04:33  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures fell sharply on Friday, with the front month July WTI contract down by more than $2/bbl because of fresh concerns about the recovery of the US economy and its negative impact on fuel demand.

US Federal Reserve chairman Ben Bernanke said on Thursday that the central bank will be ready to shield the economy of the world’s largest oil consumer from further financial stresses. However, he did not outline any potential stimulus measures.

The oil market has been pressured recently by the deepening eurozone debt crisis and by weak US employment data last week, raising hopes that the US central bank will step in to boost measures to shore up the country’s economic recovery.

At 02:37 GMT, the July NYMEX WTI contract was trading $2.10/bbl lower from the previous close at $82.72/bbl. The US crude benchmark earlier fell by $2.23/bbl to a session low of $82.59/bbl.

Meanwhile, Brent crude was trading at $98.42/bbl, down by $1.51/bbl . The North Sea benchmark earlier fell by $1.67/bbl to touch a session low of $98.26/bbl.

By: Nurluqman Suratman

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