Oil prices dip as investors guard against the slower pace of global economic recovery

18-Aug-09

Oil prices have dipped below US$67/barrel as equity markets dipped in USA as investors have got wary of the speed of global economic recovery and possible renewal in energy demand. Additionally, data from Japan - the third largest oil consumer, indicates unsteady economic recovery. The US dollar rose against a basket of currencies as investors sought a safe haven away from commodities. Interestingly, a test estimate of manufacturing in New York state moved into positive territory in August, suggesting growth in the sector for the first time since April 2008. August heralds the Atlantic hurricane season, but the concerns of possible damage due to oil and gas production halt from the Gulf of Mexico, have diminished due to ample crude stockpiles in the United States.