VIENNA – Oil prices slid well below $60 a barrel Friday as investors braced for company earnings reports next week that will provide clues on the strength of crude demand.
While global appetite for crude over the next few months remains unclear, expectations are that it will increase by next year, with the International Energy agency predicting a 1.7 percent rebound in demand by next year.
Benchmark crude for August delivery was down $1.58 at $58.83 a barrel by afternoon European electronic trading on the New York Mercantile Exchange. On Thursday, the contract rose 27 cents to settle at $60.41.
Oil had bobbed near $60 a barrel the last two days after dropping from an eight-month intraday high of $73.38 on June 30 on investor concern that a rally since Masaid global oil demand will increase by 1.4 million barrels a day in 2010 to 85.2 million barrels a day — a "strong rebound" that would be led by growth in developing countries.
The IEA left its forecast for 2009 oil demand unchanged, and still expects it to drop 2.9 percent.
Still the direction of the oil market remained unclear in the short run, with prices poised to rise substantially above — or fall precipitously below — the $60 mark., Brent prices fell $1.24 to $59.86 a barrel on the ICE Futures exchange(SOURCE:YAHOO NEWS)
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