(1888PressRelease)
May 19, 2009 - Oil prices hovered above $56 a barrel Monday in Asia as traders backed off last week's push to above $60 amid signs of weak crude demand.
Benchmark crude for June delivery was up 19 cents to $56.53 a barrel midday in Singapore in electronic trading on the New York Mercantile Exchange. On Monday, the contract dropped $2.28 to settle at $56.34.
A series of lower forecasts for world oil consumption last week undercut investor optimism that a global economic recovery was imminent. The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all cut crude demand expectations.
The outlook for the U.S. economy also turned darker last week after dismal news on unemployment and housing were reported. Retail sales fell unexpectedly in April.
"The fundamentals of oil remain quite gloomy," said Morgan Singleton Associates President, Katherine Davies. "The retail sales results show the U.S. economy is still struggling."
Crude has risen from below $35 a barrel in March, boosting gasoline and other oil product prices just as the U.S. economy is fighting to emerge from a severe recession.
High oil prices, over the last two years, which surged to a record $147 a barrel in July, helped undermine consumer demand and plunge the world into its worst economic slowdown since World War II.
"When oil goes to $60 while major economies are still struggling, those high prices will simply slow down an economic recovery," the Morgan Singleton Associates President said.
In other Nymex trading, gasoline for June delivery was steady at $1.68 a gallon and heating oil was steady at $1.41 a gallon. Natural gas for June delivery dropped 4.6 cents to $4.05 per 1,000 cubic feet.
In London, Brent prices rose 16 cents to $56.14 a barrel on the ICE Futures exchange.
Morgan Singleton Associates are highly respected within the financial community and have been providing accurate evaluations for over three decades. Working alongside Industry leaders Morgan Singleton Associates recognizes the dramatic need for major changes, with a passionate commitment to business growth. Morgan Singleton Associates provides a full range of integrated services and products simultaneously directed at producing strategically predetermined business and cultural results. We bring together a broad range of talent and resources with a passion for integrity, continuous improvement and the desire to make a difference. This results in prosperity for our customers, society and ourselves.
###
