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Oil slumps on global growth concerns

London, October 23, 2012

Oil fell sharply on Tuesday as concerns about slowing global economic growth, Europe's ongoing debt crisis and weak outlooks from corporations reporting earnings pressured oil and equities markets.

Chemical company DuPont cuts its earnings forecast and announced 1,500 job cuts in its third-quarter earnings report that missed Wall Street expectations, helping push equities, oil and other commodities lower.

DuPont's gloomy outlook came a day after heavy machinery maker Caterpillar warned the economy was slowing faster than expected.

Spain's borrowing costs rose after ratings agency Moody's downgraded five of the country's regions.

Business morale in France's manufacturing sector slumped in October to its lowest level in over two years as export demand from the euro zone weakened, adding to concerns about sputtering economic growth.

TransCanada Corp's Monday restart of its Keystone pipeline carrying crude oil from Canada to the United States added pressure on oil futures.

The economic concerns and more improving crude oil supply picture continued to counter any potential lift from the Middle East turmoil and Iran's dispute with Israel and the West over Tehran's nuclear program.

Brent December crude fell $1.72 to $107.72 a barrel by 11:44am EDT (1544 GMT).-Reuters




Tags: Oil | slump |

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