Oil prices slide on lower consumer spending and growing stock reserves in USA

15-Sep-11

World oil prices dropped followed by reports of lower consumer spending in USA and pile up in US oil inventory. Americans spending was less on autos, clothing and furniture last month, according to a report from the Commerce Department. Consumer spending is a huge driver for the U.S. economy, and while more is being spent on gas because of higher prices, demand is actually falling. The price of light sweet crude for October delivery fell marginally to settle at US$88.3 a barrel on the Nymex., while North Sea Brent blend for October delivery fell to finish at US$111.8 in London.