Oil falls to US$112

NEW YORK—Oil prices fell yesterday, extending the previous session’s slide, as investors shifted focus from the likely economic benefit of central bank stimulus to concerns about sputtering global economic growth that prompted the US Federal Reserve to launch its bond-buying programme.

Also pressuring oil, a senior Gulf source said Saudi Arabia is working to lower oil prices and is producing around ten million barrels per day and that a majority of OPEC members want oil prices around $100 per barrel and would be increasing production over the next few months.

Brent prices rose seven straight sessions before settling 2.4 per cent lower on Monday, benefiting first from growing expectations that the Fed would act to bolster the economy, and subsequently from the actual launch of the stimulus programme on Thursday after a two-day policy meeting. Brent November crude fell US$1.05 to US$112.74 a barrel.

Reuters