Oil settles at $76.72 amid economic uncertainty
Benchmark crude also dropped Friday, giving up 74 cents to settle at $76.72 a barrel on the last trading day for the December contract. Crude prices for January delivery lost 58 cents to settle at $77.47.
By BARRY HATTON
The Associated Press
11/20/2009
Oil prices edged down toward $77 a barrel on Friday after a drop in many stock markets and amid concern about the strength of the global economic recovery.
Benchmark crude also dropped Friday, giving up 74 cents to settle at $76.72 a barrel on the last trading day for the December contract. Crude prices for January delivery lost 58 cents to settle at $77.47.
Crude prices were dragged down by uncertainty about the economic outlook, including concerns about deflation and a possible double-dip recession.
Oil has seesawed between $76 a barrel and $82 for about a month as the dollar — whose fall this year has help boost crude prices from $32 in December — stabilized somewhat during the last few weeks. Investors often buy commodities such as oil as a hedge against a weaker dollar and inflation.
An analysis by Petromatrix on Friday said the past four weeks have seen a pattern of "a rally on Monday/Tuesday on the Dow and dollar hype and a correction in the second half of the week after the reality check of the weekly oil statistics showing no improvement in demand."
It said $80 a barrel "has proven to be a very strong level of resistance but until now $77 a barrel has also been a strong level of support."
"We view this sideways pattern as sustainable going forward through the balance of this year," said Galena, Illinois-based Ritterbusch and Associates in a report.
On Thursday, the U.S. Labor Department said employers are still shedding jobs, and the Mortgage Bankers Association reported a surge in foreclosures. However, some analysts expect Asian economic growth, led by China, to help offset a sluggish recovery in developed countries.
In other Nymex trading, heating oil fell 1.12 cents to $1.9852 a gallon. Gasoline for December delivery was down 0.44 cents to $1.9651 a gallon. Natural gas for December delivery dropped 5.30 cents to $4.289 per 1,000 cubic feet.
In London, Brent crude for December delivery fell 22 cents to $77.42 on the ICE Futures exchange.
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