Cars and Trucks

Oil Prices Plummet On Weak US Economic Data

Posted in Cars and Trucks

Within the fuel cards industry, there has had been a talk on the likely direction that the oil futures would take in the coming few months. Oil prices across the world have been in a trading range for quite sometime now and an event-based unidirectional move is on the cards.

There has been a talk on Iran sanctions and its likely impact on the oil futures. However, it would appear that the oil prices have taken a cue from the US economic data and moved south. Recent US economic data has reported higher number of jobless claims and this essentially means that there is a still a talk of recession and slow demand within the US. As a result, oil futures went down in anticipation of further economic weaknesses.

While the oil prices closed in New York at 98.48, down 30 cents, there was an increase in the Brent Crude Oil Index as prices moved up by 12 cents in London to settle at 110.87 a barrel. Higher prices in London have been a characteristic of the oil pricing across the globe.