Oil prices fall on economy fears

AppId is over the quota
AppId is over the quota
5 September 2011 Last updated at 16:20 GMT Continue reading the main story Oil prices have fallen on concerns that the US could fall back into recession, and continuing anxiety about eurozone debt levels.

With fears about a slowdown in China also hitting sentiment, US light crude had fallen $2.40 a barrel to $84.05.

Brent crude was also lower, dropping $1.66 to $110.67 per barrel.

The falls come after data on Friday showed that the US economy added no new jobs in August, a much worse reading than had been expected.

Analysts had predicted that the non-farm payrolls figures from the Department of Labor would show about 70,000 new jobs had been created.

The unemployment rate remained unchanged in August at 9.1%.

In Europe, the main share indexes were down sharply as concerns continue about the high debt levels of eurozone countries, and how these could impact on the wider economy.

Germany's Dax index and France's Cac were both 2.6% lower in morning trading.

Meanwhile, a report in China said that the country's service sector grew in August at its slowest pace since records began.

"Oil is falling on worries over weak demand, unemployment and talk of a double dip recession," said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt.

He added that oil prices would be falling further were it not for growing optimism that the US central bank, the Federal Reserve, will announce new measures later this month to try to stimulate the US economy.

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Prices to the consumer U.S. fall in June

July 15, 2011, updated at 14: 35 GMT us drivers still experience fuel price shock the cost of living in United States fell in June, a sharp drop in energy costs offset other price rises.

Prices to the consumer fell 0.2%, its first monthly decline in a year; excluding food and energy, prices rose slightly. The annual inflation rate was 3.6 per cent.

However, a survey of consumer confidence suggests buyers U.S. feel more pessimistic.

Concerns about the decline of income and the increase in unemployment fueled the confidence to its lowest level since March 2009.

According to the Thomson Reuters / survey from the University of Michigan, the measures of the current economic conditions and consumer expectations fell to its lowest since 2009.

Separately, a very noted indicator of manufacturing activity in the State of New York showed a contraction for the second consecutive month, a worse than expected performance.

Earlier this week, the President of the central bank of United States, Ben Bernanke, said that it would probably be temporary, recent increase in price due to an increase in unemployment and slow growth.

However, the increase in the central inflation, which excludes energy costs and food - was the largest monthly gain in three years and some Wall Street analysts continue to believe that they are building inflationary pressures.

"The world is not deflation, and we are seeing in spades on commodities," said Eric Green, Economist Chief at TD Securities in New York. "We are getting a rebound very, very strong core inflation and much more than the Fed bargained for".

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