Oil price continues slide
The Associated Press
Posted: Jun 8, 2012 12:25 PM ET
Last Updated: Jun 8, 2012 3:47 PM ET
Crude prices on the New York Mercantile Exchange have dropped from $106 US early last month. (Justin Sullivan/Getty)
The price of crude oil, Canada's number one commodity export, continued its descent Friday on the prospect of weak economic growth with no immediate assistance from the U.S Federal Reserve.
U.S. benchmark crude traded as low as $82 US during the session, closing down 72 cents at $84.10 US.
The last time oil closed below $83 was in early October of last year.
Global economic growth is weakening. Europe remains mired in a debt crisis and growth in the U.S. and China has slowed.
That reduces demand for oil to make fuels for shippers and travellers.
Oil prices had risen off recent lows on hopes that Federal Reserve Chairman Ben Bernanke would unveil a plan to stimulate the U.S. economy. But he told Congress Thursday that no plan was imminent.
Bernanke told Congress on Thursday that the Fed is ready to act if the financial crisis in Europe threatens the U.S. economy.
But he didn't indicate that any new steps were on the way.
Some analysts expect policymakers won't sharply loosen monetary policy until the global economy and crude demand are weaker."There have been no 'game changers' this week," said Julian Jessop, chief global economist for Capital Economics.
"The prices of commodities should end the year much lower than they are now."
Crude dropped from $106 early last month to below $82 on Monday.
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