World oil prices fell sharply Friday on profit-taking, after bumper gains earlier this week, on news that the US economy shrank more sharply than expected in the fourth quarter of 2008.
New York’s main contract, light sweet crude for April delivery, sank 1.71 dollars to 43.51 dollars a barrel. Brent North Sea crude for April shed 1.02 dollars to 45.49 dollars per barrel. “Prices could come off a little ahead of the weekend,” said VTB Capital analyst Andrey Kryuchenkov.
The market accelerated losses after data showed that the US economy �" the world’s biggest energy consumer �" shrank at a faster than expected pace in the fourth quarter of 2008.
The US economy shrank at a 6.2 percent annual pace in the 2008 fourth quarter, government data showed Friday highlighting the stunning meltdown in activity late last year.
The decline was the worst since the first quarter of 1982, the Commerce Dept data showed. Oil also retreated on profit-taking after rising for a third consecutive day on Thursday, when the market was buoyed by signs of stabilizing energy demand.
“Crude futures rallied on Thursday, still underpinned by a fairly bullish report from the EIA on Wednesday and concerns over OPEC supplies,” Kryuchenkov added.
“Persistent supply jitters ahead of the group’s next meeting in March in Vienna are still market supportive.”
