Financial Advisor

Oil Prices Extend Weakness amid Fuel Demand Concerns

Correction in oil prices continues in European session with the front-month WTI crude oil contract falling to 88.40/45. Heating oil and gasoline prices also slumped. MasterCard's survey showed that gasoline demand in the US tumbled -12.5% to 8.41M bpd in the week ended December 31 from a week ago. This was the lowest level since September 2005. The report, together with API's estimate of huge gasoline stock-builds last week, spurred worries about oil fundamentals once again. Gold, on the other hand, recovered modestly as some investors believed yesterday's selloff was overdone.

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