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Crude drops as Spain enters a recession

Published 04/30/2012, 08:02 PM
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Investing.com - Crude oil futures fell in Asian trading on Tuesday as investors sold on news Spain has officially entered recession territory, which fueled worries the eurozone as a whole faces gathering headwinds.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD104.84 a barrel, down 0.03%, off from a session high of 104.81 and up from an earlier session low of USD104.98.

It's official: Spain is in a recession.

The country reported that it had entered its second recession since 2009, with the country's gross domestic product contracting by 0.3% in the first quarter of this year, the same amount it contracted during the fourth quarter of 2011.

News out of the U.S. didn't help the growth-sensitive commodity.

The Chicago purchasing managers’ index, a key gauge for Midwest manufacturing activity, fell by 6.0 points to a seasonally adjusted 56.2 in April from a reading of 62.2 in March, the worst reading since November of 2009.

Analysts had expected the index to decline to only 61.0 in April.

The Bureau of Economic Analysis reported that consumer spending jumped 0.3% in March, slowing from 0.9% the previous month and a little below market hopes for a 0.4% gain.

Personal incomes, meanwhile, rose 0.4% in March, outpacing market forecasts for 0.3% growth, yet the overall mood was bearish.

Nerves are growing increasingly on edge that Friday's U.S. jobs report could disappoint, sparking fears the U.S. is running into yet another mid-year soft patch and need less crude and fuels to motor its economy.

On the ICE Futures Exchange, Brent oil futures for June delivery were up 0.10% and trading at USD119.42 a barrel, up USD14.58 from its U.S. counterpart.







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