praveen
10-02-2009, 06:32 AM
Oil prices fell on Monday as a gloomy US demand outlook outweighed talk of OPEC production cuts and hopes that a US economic stimulus package would be passed by Congress this week. US crude for March delivery settled at $39.56 a barrel, down 61 cents. London Brent settled at $46.02 a barrel, down 19 cents.
"The overall weight is to the low demand picture ... the recession argument is winning out time and time again," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. "In the case of the OPEC cuts, we're starting to see them, but they still have some ways to go. In terms of the effect of the stimulus package, that's not something that's going to be seen in the real economy until the late third quarter or fourth quarter (of 2009) at the soonest."
"The overall weight is to the low demand picture ... the recession argument is winning out time and time again," said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. "In the case of the OPEC cuts, we're starting to see them, but they still have some ways to go. In terms of the effect of the stimulus package, that's not something that's going to be seen in the real economy until the late third quarter or fourth quarter (of 2009) at the soonest."