SINGAPORE - Oil extended losses to below US$94 yesterday after falling 3 per cent a day ago, dragged lower by growing expectations of a rise in Opec production and negative US economic data.
US oil was down 49c or 0.5 per cent to US$93.93, after tumbling US$3.28 to
US$94.42 a barrel the previous day.
London Brent crude fell 48c to US$92.04 a barrel.
"It's difficult to buy oil when you know that the market is worrying about a recession in the world economy, especially in the United States," said Ken Hasegawa, commodity derivatives sales manager of Fimat Japan.
US consumer confidence fell for a fourth straight month in November to a two-year low on concerns about rising petrol prices and financial market volatility.
Market concerns that a US economic slowdow could crimp oil demand in the world's top energy consuming nation have weighed on crude's record rally, as have prospects that Opec could agree to ramp up output at a meeting next week.
Some Opec members are already making noises about raising production, with Indonesia's oil minister saying he would back a hike of 500,000 barrels per day (bpd). "I will support Opec on a new production increase," Indonesian Energy Minister Purnomo Yusgiantoro said.
But some traders were sceptical that Opec will lift production, noting some ministers have said supplies are sufficient to meet demand. Opec President Mohammed bin Dhaen al-Hamli repeated yesterday that there was no shortage of crude in the market.
- Reuters
