Crude oil gave back its earlier gains after a report on May 13, 2009 showed a weaker-than-expected fall in US retail sales, raising concern that the recession may be prolonged. Crude also decreased as the International Energy Agency on May 14, 2009 forecast the biggest contraction in world oil use since 1981.
“We’re definitely not out of the woods yet on this economic recession,” said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. “Fuel demand is bad and the IEA report really drove that home.”
Prices dropped to $56.55 a barrel on May 14, 2009, a four-day low, after the IEA report and rebounded to close at $58.62 a barrel as US stocks advanced on a drop in bank borrowing and better-than- estimated earnings at computer software maker CA Inc.
Brent crude oil for July 2009 settlement was at $58.65 a barrel, up 6 cents, on London’s ICE Futures Europe exchange at 10:55 a.m. Singapore time. It gained 47 cents, or 0.8%, to $58.59 a barrel on May 14, 2009. The June 2009 contract, which expired May 14, 2009, dropped 65 cents, or 1.1%, to $56.69 a barrel.
