ENVIRONMENT
05/09/2009 05:12 am ET Updated May 25, 2011

Oil Tracks Sliding Markets, Falls Below $50

Oil prices settled below $50 (U.S.) a barrel Tuesday as the energy markets tumbled with the stock markets amid growing doubts about corporate earnings and global energy demand. Daniel Flynn, an analyst at Alaron Trading Corp., said oil is trading off the U.S. dollar and the stock indexes, and that trend is likely to continue until global demand picks up and starts tapping into growing crude stockpiles. Oil prices jumped from below $35 in February to above $54 last month as economic optimism trumped concerns of poor demand and oversupply because of the recession. Supply and demand are key factors, said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service, but investors should not overlook the most important fundamental - money flow. Mr. Kloza, noting that the December crude futures contract neared $60 recently, said investors continue to flock to the oil markets for a long-term hedge against inflation. 2

Oil prices fell Wednesday in Asia as crude markets followed equities down on waning optimism the U.S. economy will soon recover from a severe recession. Benchmark crude for May delivery fell $1.11 to $48.05 a barrel by late afternoon in Singapore in electronic trading on the New York Mercantile Exchange. 1
  1. Oil Falls to $48, Following Stocks Down (Yahoo Energy)
  2. Oil Tracks Sliding Markets, Falls Below $50 (The Globe and Mail)

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