Oil hit by recovery worries

25 January 2010

Written by John King

Crude oil prices fell marginally during the Asian trading session this morning (January 25th) and remained below $75 (£46.50) a barrel on the New York Mercantile Exchange (Nymex).

The commodity weakened further on Friday as concerns about China's lending policy persisted and US stocks endured a torrid three-day slump.

Heating oil prices also moved lower amid gloomy trading conditions, with the headline Nymex contract moving below the $2-a-gallon mark at the end of the week and slipping further this morning.

Speaking to Reuters, Toby Hassall, chief commodities analyst at CWA, commented: "President Obama's proposal to tighten bank trading rules as well as expectations that China may take further steps to tighten monetary policy will also be the two key themes that will continue to cast a pall on oil."

US stocks are also expected to see volatile trading this week as the last of the major corporate earnings reports emerge, the analyst claimed.

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