RTTN:Crude Slips To 10-month Low Amid Growth Worries
(RTTNews) - The price of crude oil was extending losses Monday morning amid global growth concerns after rating agency Standard & Poor's on late Friday downgraded U.S. sovereign credit rating by one notch to 'AA+' from 'AAA' with a negative outlook.
Light Sweet Crude Oil (WTI) futures for September delivery were down $3.10 to $83.78 a barrel. Last week, oil surrendered nearly 10 percent as traders fret over demand growth amid concerns of a double dip recession.
Bank of America Merrill Lynch said crude oil prices will trend lower in the second half of 2011as additional barrels from Saudi Arabia and non-OPEC countries provide some relief. BofA sees Brent crude oil prices averaging $106 a barrel and WTI averaging $90 a barrel during the period. It also predicts the 2012 average oil price at $114 a barrel for Brent and $102 a barrel for WTI.
This morning, the U.S. dollar was moving higher against the euro, sterling and the Swiss franc Japanese, while ticking lower against the yen.
In economic news, the euro zone investor confidence deteriorated notably in August after improving in July, according to a leading survey. The sentix investor sentiment index, an indicator of confidence around 900 investors, fell to minus 13.5 from 5.3 points in July. Economists had expected the index to fall to just 4 points.
This week's focus will be on FOMC rate decision, weekly jobless claims data and retail sales figures.
Also weekly crude oil inventories data from the API, due out Tuesday after the market hours, and the EIA due out the subsequent day will be in focus.
