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Oil price drops below $76 on demand concerns

04 December 2009 08:13 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil fell for a third day after a report showed service industries in the U.S. unexpectedly contracted in November, raising concern fuel demand may be slow to recover from the worst recession since World War II. Bloomberg reported.

Oil headed for a second weekly decline after the Institute for Supply Managementâ€™s index of non-manufacturing businesses that make up almost 90 percent of the economy slipped to 48.7 from 50.6 in October, the Tempe, Arizona-based group said yesterday. A Labor Department report today will probably show the U.S. economy lost jobs in November.
Crude oil for January delivery fell as much as 85 cents, or 1.1 percent, to $75.61 a barrel in electronic trading on the New York Mercantile Exchange. It was at $75.94 at 11:35 a.m. Singapore time. Yesterday, the contract fell 14 cents to $76.46 a barrel, a four-day low. Prices, up 70 percent this year, are poised for a 0.2 percent weekly decline.
The Labor Department may say in a report today U.S. employers dropped 125,000 non-farm workers from their payrolls, according to the median of forecasts from 81 economists surveyed by Bloomberg News.