Oil Eases From Six-Month High On Weak Housing Data
20 May 2009
LONDON: Oil slipped from a six-month high above $60 a barrel on
Tuesday along with other commodities and stock markets as data
showed US housing starts fell to a record low in April,
tampering hopes of economic stabilisation.
US crude oil for June lost ground shortly after the release of
the housing data, having hit a six month high of $60.48 a barrel
earlier in the day.
The contract was up 22 cents to $59.25 by 1431 GMT ahead of its
expiry late in the day.
The more actively traded July contract was trading 35 cents down
at $59.24. North Sea Brent for July was 21 cents down at $58.26.
Other commodities and European shares pared earlier gains.
US stocks fell at the open then turned positive. Housing led the
US economy into recession and the April figures released today
are a stark reminder that we are not yet out of the woods, Harry
Tchilinguirian, BNP Paribas senior oil analyst, said.
The oil market still needs to face up to high levels of
inventory, so far kept off the market, and contractionary
economic activity in the first half of this year.
Oil prices have been on an upward trend since mid-April
inequity-led rallies despite soft demand and heavy oil
inventories. They have also recovered from below $33 in December
last year after a plunge from record highs above $147 in July.
