Finotec News Archive - August 29 2007
Oil Falls on Concern Slowing Economy in U.S
Oil Falls on Concern Slowing Economy Will Curb U.S. Fuel Demand
Crude oil fell after industry reports pointed to slowing U.S. economic growth, raising the prospect of lower demand for gasoline and other fuels.Rodian Rahnayev 
29 August 2007
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Crude oil fell after industry reports pointed to slowing U.S. economic growth, raising the prospect of lower demand for gasoline and other fuels.
Consumer confidence fell in August by the most since just after Hurricane Katrina two years ago, as tumbling stock prices and lower home values left Americans feeling less wealthy. Oil in New York has dropped 8.9 percent from a record $78.77 a barrel on Aug. 1 on signs economic growth would slow because of tightening credit. The U.S. consumes 24 percent of the world's oil.
Oil was also pulled lower by gasoline after Chevron Corp. said it had started up ``several process units'' at its refinery in Pascagoula, Mississippi. An Aug. 16 fire forced a partial shutdown, a spokeswoman said. The Pascagoula refinery can process 330,000 barrels of crude oil a day.
The Organization of Petroleum Exporting Countries, which has resisted calls to increase output, meets Sept. 11 in Vienna to discuss production policy for the fourth quarter.
``You cannot convince any member to add more crude to the market because we have enough crude,'' OPEC Secretary General Abdulla El-Badri said in an interview today in Luanda, Angola. ``There's enough oil in the market, we don't know what to do with it.''
Finotec Analysis Team
29 August 2007
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