Oil Prices Slumps on Growth Concerns

By CnAgri2012-10-24 19:34:14 Print

Oil prices fell sharply on Tuesday as slowing global economic growth, Europe's continuing debt crisis and weak earnings forecasts from U.S. corporations pressured commodities and equities. According to Reuters, Brent fell for a sixth straight session and U.S. crude was down for a fourth consecutive day to settle at a three-month low.

Evidence of slowing economic growth and an improving crude oil supply picture continued to counter any potential lift from Middle East turmoil and Iran's dispute with Israel and the West over Tehran's nuclear program.

Chemical company DuPont lowered its earnings forecast, announced 1,500 job cuts and posted lower-than-expected profit, helping to push equities, oil and other commodities lower.

The Thomson Reuters-Jefferies CRB index, a gauge widely followed by commodity investors, fell 1.2 percent.

DuPont's gloomy outlook came a day after heavy machinery maker Caterpillar Inc warned that the U.S. economy was slowing faster than expected.

Rising Spanish borrowing costs and slumping business morale in France's manufacturing sector added to concerns about Europe's debt crisis and sputtering economic growth.

Brent December crude fell $1.19 to settle at $108.25 a barrel, its lowest settlement since Oct. 3. It slumped to $107.31, its lowest level since Sept. 20 and below the 100-day moving average of $107.42.

U.S. December crude fell $1.98 to settle at $86.67 a barrel, its lowest settlement since July 12. Tuesday's low trade was $85.69.