|Oil falls to near $87 a barrel on growth concerns||| Print ||
|Written by PABLO GORONDI, Associated Press|
|Wednesday, 17 April 2013 07:38|
The price of crude oil dropped to near $87 a barrel Wednesday amid concerns over the outlook for global economic growth.
By early afternoon in Europe, benchmark oil for May delivery was down $1.51 to $87.21 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 1 cent on Tuesday.
Crude has fallen sharply over the past week, part of a broad sell-off in commodities that included gold recording its biggest one-day drop in 30 years, due mainly to lower-than-expected growth in China during the first quarter of the year.
On Tuesday, the International Monetary Fund lowered its outlook for world economic growth this year to 3.3 percent from its forecast in January of 3.5 percent. It expects U.S. economic growth of 1.9 percent this year, down from its January estimate of 2.1 percent, while the combined economy of the 17 euro countries is seen shrinking 0.3 percent in 2013.
"It seems that the oil market is tracking losses in the European equity markets as market sentiment remains fairly bearish," said analysts at Sucden Financial Research in London. Stock markets in London, Frankfurt and Paris were down between 0.7 percent and 1.7 percent on Wednesday.
Investors are also awaiting fresh information on U.S. stockpiles of crude and refined products.