Oil tumbles, closes below $50 in NY
AFP, New York
World oil futures slid Friday, closing below 50 dollars a barrel for the first time in more than two months in New York, as markets reacted to slower US economic growth amid rising oil inventories. New York's main contract, light sweet crude for delivery in June, fell 2.05 dollars to 49.72 dollars a barrel in closing deals. That was the lowest close since February 18, when the benchmark contract closed at 48.35 dollars The drop capped an 11 percent slide in crude oil futures over the past week, moving further away from the record levels hit above 58 dollars a barrel earlier this month. In London, the price of Brent North Sea crude oil for delivery in June retreated 1.88 dollars to close at 50.60 dollars per barrel. "I think what we're seeing is a downward correction and adaptation to the fundamentals currently in the marketplace, including high levels of supply," said Jason Schenker at Wachovia Securities. Schenker said there had been "a great deal of downward momentum" in the market, helped in part by President George W. Bush's speech this week pledging to move toward greater US energy independence and non-petroleum energy sources.
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