Most Recent

Cow Calf Weekly

Subscribe to our weekly newsletter... It's FREE!

Online Exclusives

Oil, Gasoline Tumble as World Bank Predicts a Deeper Recession

Economic recovery may take longer than predicted


         Subscribe in NewsGator Online   Subscribe in Bloglines  

Crude oil fell more than $2 a barrel and gasoline tumbled after the World Bank said the global recession will be deeper than forecast, bolstering concern that fuel consumption will remain depressed. Oil dropped 3.8 percent after the bank projected the world economy will contract 2.9 percent this year, more than its previously forecast decrease of 1.7 percent. Prices also declined as the dollar strengthened, reducing the appeal of commodities as an alternative investment. “We’re lower because reality is asserting itself,” said Chip Hodge, who oversees a $9 billion natural-resource-company bond portfolio as managing director at MFC Global Investment Management in Boston. “Prices have rallied in anticipation of an economic recovery. Now it looks like the recovery will take longer and be less steep that was previously thought.”

Crude oil for July delivery fell $2.62 to $66.93 a barrel at 2:55 p.m. on the New York Mercantile Exchange, the lowest settlement since June 3. It was the biggest one-day decline since May 15. Prices, up 50 percent this year, have dropped 8.6 percent from a seven-month high of $73.23 reached on June 11. Futures for July delivery expired today. The more-active August crude oil contract slipped $2.52, or 3.6 percent, to settle at $67.50 a barrel. Gasoline for July delivery declined 6.47 cents, or 3.4 percent, to end the session at $1.8597 a gallon in New York. It was the lowest settlement since May 26.

Get Copyright Clearance Want to use this article? Click here for options!
© 2010 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Browse Back Issues

Interact with us:

BEEF Magazine on Facebook BEEF Magazine on Twitter

View our Coverage OR View Movie Trailer Here

Marketplace Ads

  • Hubbard Feeds, Inc

    Give us a call at (800)535-2428 to see if we can benefit your operation.

  • Livestock Markets

    The Place To Source Your Cattle and Horses.

  • Your ad Here!

    Advertise your business here! Find out how.

  • Ag Maps for sale

    Ag Maps for Sale!

Resources

  • Western Art Prints
  • World Ag Expo
  • 2007 Fencing Guide
  • 2008 Feed Composition Tables
  • Cattlemen's Calendar
  • Biosecurity
  • 2009 Alliance Yellow Pages
  • Estate Planning
  • Calf Health
  • RFID Suppliers
  • State of the Industry
  • Free Product Info
  • National Stocker Survey
  • Lets talk ag logo
  • National Stocker Survey
  • BEEF Cartoons