Crude-oil futures edge down toward $80/barrel
By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) — U.S. crude-oil futures continued to slide during Asian hours on Friday, as a deteriorating global economic outlook pushed investors away from risk assets, deepening concerns about demand for commodities.
New York Mercantile Exchange crude-oil futures for September delivery CL1U -1.94% shed $1.42, or 1.7%, to $80.96 a barrel in electronic trading.
“It is clear that deceleration in growth ... seems to be gathering momentum and now spreading beyond Europe and the U.S.,” MF Global analysts wrote in a note to clients.
“But we think we will be able to avoid tipping into recession here in the U.S... The more energy prices go down, the more optimistic we get, as oil, more than any other commodity complex, has the capacity to perhaps single-handedly jump-start growth,” they added.
The drop came on top of the $5.20, or 5.9%, plunge in a regular Nymex session Thursday, when the front-month contract suffered its biggest percentage and dollar price decline since Aug. 8. At the latest prices, the front-month oil contract has lost in excess of 15% of its value.
The drop came as Asian equity markets tumbled to extend losses after stocks in Europe and U.S. plunged on Thursday. Read Asia Markets.
Meanwhile, September natural gas futures NG11U +1.16% advanced, rising 4.8 cents, or 1.2% to $3.94 per million British thermal units.
Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.
