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Oil prices slide on fears of weaker demand

Dunya News

Oil prices fell in world markets on concerns about the troubled European economy.

World oil prices dropped on Monday as concerns over weak demand stemming from Europes debt crisis largely offset production stoppages in the Gulf of Mexico and Norway.New Yorks main contract, light sweet crude for delivery in August, slid 55 cents to $79.21 a barrel.Brent North Sea crude for August, down most of the day, finished up three cents to $91.01 in London.Prices had risen slightly in Asian trading as the onset of Tropical Storm Debby forced oil and gas operators in the Gulf of Mexico to evacuate some platforms and rigs.The oil market started the week in negative territory... tracking losses in the global equity markets, said Sucden Financial Research analyst Myrto Sokou.Market sentiment has been hurt amid renewed concerns about the uncertain economic conditions in the eurozone ahead of the crucial European Union summit meeting on Thursday and Friday.Traders were also tracking the impact of the storm Debby.Over the weekend we see that the Gulf of Mexico has been affected by the storm and production has been disrupted, Ker Chung Yang, commodity analyst for Phillip Futures in Singapore, told AFP.They shut the rigs in the Gulf of Mexico, so I think this is one of the key reasons that is supporting the oil prices at the moment.Oil production in the region constitutes 20 percent of US output, and any disruption would have ramifications on crude prices as the US is the worlds largest oil consumer.