Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Crude falls on weak U.S. retail sales data

Published 06/13/2012, 08:17 PM
Updated 06/13/2012, 08:18 PM
LCO
-
CL
-
FISI
-
Investing.com - Crude oil futures fell in Asian trading on Wednesday after the U.S. government reported weaker-than-expected retail sales for May.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD82.56 a barrel on Monday, down 0.08%, off from a session high of USD82.67 and up from an earlier session low of USD82.38 in rather volatile trading

Earlier in the U.S., the Commerce Department reported that retail sales fell by a seasonally adjusted 0.2% in May, while April’s figure was revised to a 0.2% decline from a previously reported gain of 0.1%.

The data represented the first back-to-back decline in two years, and fueled fears that the economy continues to battle headwinds.

Meanwhile, core retail sales, which are stripped of automobile sales, fell by 0.4% in May, the biggest decline in a year.

Producer price inflation fell 0.1% in May, while core producer price inflation fell 0.2% in May, the latter being the largest monthly decline since July 2009.

On top of dismal jobs data and tepid growth rates, the retail sales numbers confirmed fears the U.S. economy is recovering at a slower pace and will need less fuels to operate.

Spanish debt fears continued to push oil prices lower.

European finance ministers recently arranged EUR100 billion for Spain’s banks although fears persist that even when the funding recapitalizes the country's financial institutions, Spain will still carry hefty debt burdens that could hamper access to credit markets.

The yield on Spanish 10-year bonds hit 6.76%, close to the critical 7% threshold deemed unsustainable.

Meanwhile Greece goes to the polls on Sunday to elect a new parliament, which further pressured crude on fears a strong leftist showing may open the door to a Greek exit from the eurozone.

On the ICE Futures Exchange, Brent oil futures for August delivery were down 0.01% and trading at USD96.69 a barrel, up USD14.13 from its U.S. counterpart.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.