London (Archyde.com)
Oil prices fell yesterday, two days following recording gains, and they are on track to incur a weekly loss due to pressures from the strength of the dollar and fears of a global economic slowdown.
Brent crude futures were down 97 cents, or 1 percent, at $95.62 a barrel by 0826 GMT. US West Texas Intermediate crude also recorded $89.59 a barrel, down 91 cents, or one percent.
Both benchmark contracts are heading to record weekly losses of close to three percent.
A stronger dollar made oil more expensive for holders of other currencies, while Asian and European stocks declined.
In a sign that the oil supply bottleneck is easing, the gap between the spot price of Brent and the second nearest expiry month for futures contracts is nearly $5 less than at the end of July.
Analysts at BVM said: “The global recession and its destruction of demand is at the forefront and center of current concerns given the weak data coming from the United States, the euro area and China. Indicators of slowing economic growth are dominant and may curb the demand for oil.”
