Slowdown in US growth leads to oil price drop

25-Mar-08

Global crude oil prices have dipped to hover around US$100, largely on the back of slower growth in the United States, the world's largest economy- likely to take a toll on oil demand. As per last weeks' report by the OECD, it was suggested that the American economy was staggering on the brink of recession. This could eventually stall wider global growth significantly. Prices have come under pressure since the Paris-based Organization for Economic Cooperation and Development (OECD) reported that the US economy was now expected to grow 0.1% in the first quarter, down from the 0.3% estimated in December, and would display zero growth in the second, compared with 0.4% previously estimated. US growth will falter in part due to the ongoing housing downturn, which is likely dampen home prices.