Oil Price Falls to Less Than $92

Amid a bleak economic backdrop, the decrease in the price of oil to under $92 a barrel today can be attributed to the slowdown of global growth and the fall in demand for crude oil.  In Europe, the price of benchmark crude was $91.61 a barrel on the New York Mercantile Exchange.  Brent Crude was priced at $110.02 on the IntercontinentalExchange Futures in London. When the global economy slumps, the demand for fuel also falls which leads to the price of oil decreasing. However, if the cost of energy falls, it can help to stimulate economic growth in the long term.

Furthermore, as crude oil is traded internationally, a strong US dollar can make the commodity an expensive and unattractive investment for those using foreign currencies. In addition to this, the Euro was $1.2920 on Monday, which is lower than $1.2974 from the previous Friday.

To add to the pressures of weakening global growth, the US Labor Department announced that the rate of unemployment, an indicator of economic growth, actually increased in over half of the states of America during the past month. This highlights the fact that hiring across the biggest economy in the world continues to be a problem.  Moreover, the World Trade Organisation has slashed estimates on their predictions for trade growth in the global economy for 2012 and 2013 which will result in a fall in demand for fuel such as crude oil. As a result, the price falls to reflect market conditions to generate demand.

If you are looking to find the most up-to-date independent prices of fuel oils in the UK then Find a Fuel Supplier can help fuel suppliers display the latest heating oil prices and kerosene prices to the consumer market.

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