OPEC Weekly Oil Price Continues to Fall
    2012-06-04 22:44:57     Xinhua      Web Editor: Li
The weekly average price of the Organization of Petroleum Exporting Countries (OPEC) fell to 102.28 U.S. dollars per barrel last week, thanks to the lingering eurozone crisis and disappointing economic trends in the U.S. and China, the Vienna-based cartel said on Monday.
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The weekly average price of the Organization of Petroleum Exporting Countries (OPEC) fell to 102.28 U.S. dollars per barrel last week, thanks to the lingering eurozone crisis and disappointing economic trends in the U.S. and China, the Vienna-based cartel said on Monday.

OPEC weekly oil prices have dropped for five consecutive weeks, hitting the lowest level since the start of 2011.

 

The basket price slipped by 3.62 U.S. dollars to 97.44 U.S. dollars a barrel on Friday. It was the first time for the oil price to drop below 100 U.S. dollars since October.

 

The cartel attributed the price fall mainly to an unfavorable global economic situation which fuelled fears of a second global recession.

 

Markets have been jittery about Greece and Spain's ability to deal with their debt problems and banking sector concerns, and over the possibility of a Greek exit from the eurozone.

 

A "Grexit" could cost creditor 400 billion euros in direct losses and more than one trillion euros in indirect losses. A disorderly exit from the eurozone could trigger a domino effect, sapping confidence in the single currency area at a time when it is struggling to defend its credibility.

 

Meanwhile, the U.S. economic recovery perspectives also did not seem optimistic.

 

Non-farm payrolls figures in the U.S. remained poor for two consecutive months. A survey of U.S. employers showed 69,000 jobs were created last month, the weakest in a year, the Labor Department said on Friday.

 

According to figures from the U.S. National Association of Realtors, the U.S. existing home sales dropped by 5.5 percent in April from the previous month, hitting the lowest point in four months.

 

China's non-manufacturing purchasing managers' index also eased from 56.1 in April to 55.2 on a 100-point scale in May, the weakest reading this year.

 

Analysts believe the international oil prices would still lack a strong driving force in the short term and that the possibility of a further drop in oil prices still exists.

 

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