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Light oil price down 3.6 percent in Friday trading
Published on November 1, 2009 by oilprices · 1 CommentUS Light crude oil price erased Thursday’s gains and slumped more than 3 percent on Friday trading as US government data showed US consumer spending dropped for the first time since April.
Light, sweet crude oil futures for December delivery fell $2.87 or 3.6 percent to settle at $77.00 dollars a barrel on the NYMEX. The contract fell 4.3 percent this week, the first weekly decline in October.
According to the Commerce Department, US consumer spending slipped 0.5 percent in September, which was the first decline since April and the largest slump in nine months. Hitting by the weak consumer spending data, Wall Street plummeted Friday along with commodities markets, with the Dow Jones industrial average dropped more than 270 points in afternoon trading.
Meanwhile, the US dollar strengthened against most of the major currencies, also exerting downward pressure on the prices of oil.
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Most indicators suggest oil may not price trading much higher than the $80 mark in the near future, barring any unforeseen events.
However, if crude oil prices continue to rise and oil demand continues to increase, we could likely see higher prices yet.