Oil prices settled at US$66.71 per barrel on a new report showing that uncertainty among consumers on job losses and also growing evidence that US crude supplies have grown. News that consumer confidence has declined this month on growing concerns among Americans over the weak job market; has pulled down oil prices marginally. Unemployment, running at a 26 year highs, is expected to continue to rise in the months. This adds to mixed signals on the health of the economy. This dip is added evidence that investors are concerned over intensity and firmness of the current economic recovery. The past fortnight has witnessed a six dollar fall as investors have focused on rising inventory levels and indicators that an economic recovery is not expected as rapidly as anticipated.
On the supply side, Iran continues pursue nuclear technology for peaceful reasons, but global skepticism prevails over their claims. A second uranium enrichment facility, built underground on a military installation was discovered along with firing of a couple test missiles capable of reaching Israel. Peace in Iran is important as about 25% of the world's oil supply flows through the Strait of Hormuz, which is adjacent to the country.
In London, Brent crude fell to US$65.49 the ICE Futures exchange.
01-Oct-09 
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