Commodity Daily News

Weakening U.S. Economy lowers the U.S. Demand for Fuel.

Yesterday was a very bearish trading day for the "Black Gold" as traders are concerned that global consumption is falling amid slowing economic growth. Although the bad news releases hurt the USD, which would cause the Crude Oil prices to rise, they actually impacted the Crude Oil in the other direction as it seems that the weakening U.S. economy will lower the U.S. demand for fuel.
Further sparking this demand worry, the world's second-biggest energy consumer, China, saw its manufacturing decrease for the first time since 2005. Crude Oil futures for September fell as much to $123.22 a barrel on the New York Mercantile Exchange extending the biggest monthly decline since 2004. Analysts are expecting further bearishness in Crude Oil prices as Tetsu Emori, a fund manager at Astmax Co. in Tokyo said that, ``I don't think we have seen the bottom of oil prices yet. Oil refiners don't want crude oil because demand for fuels is down