Oil dips further on demand concerns

Global oil prices dropped further in Asian trade Monday as concerns over dipping fuel demand worried investors and traders alike. Light sweet crude for October delivery was seen trading at $85.54 a barrel at 12.30 p.m Singapore time while London’s Brent crude for October delivery was seen at $111.66 a barrel on the ICE Exchange. The European benchmark was at a premium of $25.79 to WTI futures, compared with a record close of $26.21 on Aug. 19. In other Nymex trading for October contracts, Heating Oil fell 2.0 cents to $2.98 per gallon and Gasoline futures dropped 2.0 cents to $2.82 per gallon. Natural Gas for October delivery gained 2.0 cents to $3.89 per 1,000 cubic feet. Analysts said the black Gold is likely to remain highly volatile after a dismal US jobs data. They added that Gasoline demand in world’s largest oil consumer fell 4.1 percent from a year earlier. Labor Department said Friday that U.S. employers stopped adding jobs in August and the unemployment rate remained at 9.1 percent. Second largest consumer China’s economy also suffering from high inflation and that too hurting oil demand there, analysts added. On Friday, world oil prices slumped as New York’s main contract, West Texas Intermediate (WTI) for delivery in October, dropped $2.48 to close at $86.45 a barrel. In London, Brent North Sea crude for delivery in October fell $1.96 to settle at $112.33 a barrel on the Intercontinental Exchange.