Oil falls from 31 month high on signs of a faltering global economic recovery

29-Apr-11

Crude for June delivery fell to US$112.2 on the Nymex, while Brent for June settled at US$124.8 on London’s ICE Futures. Oil declined from a 31-month high in New York, trimming an unprecedented eighth monthly gain as signs of a faltering global economic recovery stoked speculation that demand for crude will decline, as per Bloomberg. Reports today may show US spending cooled and businesses grew at a slower pace in the world’s biggest crude-consuming nation. Fears abound that slightly bearish US Q1-GDP is an indication of the recovery slowing down, with bearish implications on oil demand.