Crude drops on global growth concerns (USO)

July 16, 2012 - PRLog -- News that retail sales disappointed in the U.S. sent the commodity falling further as well.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD88.56 a barrel on Tuesday, down 0.28%, off from a session high of USD88.63 and up from an earlier session low of USD88.50.

The International Monetary Fund cut its global growth forecast for 2013 to 3.9% from 4.1%, which sent oil falling as a cooler global economy will need less fuels and energy to grow.

The Commerce Department reported U.S. retail sales dropped by a seasonally adjusted 0.5% in June, far worse than market calls for a 0.2% gain.

The softer-than-expected numbers came in wake of a 0.2% decline in May and marked the first time retail sales had dropped in three consecutive months since late 2008.

Core retail sales, which are stripped of automobile sales, contracted for a second consecutive month, dropping 0.4%, defying market expectations for a gain of 0.1%, after falling by 0.4% in May.

Investors sold oil on the gloomy numbers, brushing off reports a U.S. Navy fuel ship shot a boat off the United Arab Emirates headed for it at high speed, ignoring warnings to halt its advance.

There was no indication at the time Iran was involved.

Tensions between the West and Iran rose earlier this year, with the former accusing the latter of developing a nuclear weapons program.

Iranian boats have circled U.S. naval ships in the past.

On the ICE Futures Exchange, Brent oil futures for September delivery were down 0.15% and trading at USD103.18 a barrel, up USD14.62 from its U.S. counterpart.

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