Oil futures slumped under US$40 a barrel on Friday at the end of a tough week for the commodity, as a weakening US economy hit demand causing energy inventories to pile up.
Unemployment in the US — the world’s biggest economy and a major consumer of commodities — surged last month to 7.6 percent, the highest since 1992, as 598,000 jobs were cut, the Labor Department reported on Friday.
The number of job losses for the recession-hobbled economy was the worst since 1974, according to the monthly report on nonfarm payrolls, seen as one of the best indicators of economic momentum. The department also revised up its estimate of December job losses to 577,000 from 524,000.
“Overall, another awful payrolls report and, with initial jobless claims still edging higher, February could be even worse,” Capital Economics’ US specialist Paul Ashworth said.
The market was rocked this week by heightened concerns that the US — the world’s biggest energy consuming nation — will slash energy demand to cope with a dramatic downturn, analysts said.
The price of New York’s light sweet crude oil tumbled as low as US$38.60 a barrel on Friday after the latest bad news from across the Atlantic.
“Crude oil fell on concern that fuel demand in the US ... may decline, as a report showed the number of newly jobless climbed,” BetOnMarkets analyst Dave Evans said.
The market was also dragged lower this week by news of rising American crude inventories. US government data showed on Wednesday that crude stockpiles had soared by 7.2 million barrels last week, more than double the 2.9 million barrels forecast by analysts. It was the fifth consecutive week of gains, and the sharp rise underlined slack demand amid the global financial crisis that has brought the world economy to a near-halt.
OPEC signaled last week that it would consider more reductions in output as its member countries try to lift prices and in turn their incomes. OPEC, which pumps about 40 percent of the world’s oil, announced production cuts totalling 4.2 million barrels per day late last year. The cartel is to meet again next month.
After plunging from record highs above US$147 last July, oil prices touched multi-year lows in December, at one point nearing US$32 a barrel.
By Friday on the New York Mercantile Exchange, light sweet crude for delivery in March tanked to US$39.54 a barrel from US$41.74 a week earlier. On London’s InterContinental Exchange, Brent North Sea crude for March sank to US$45.23 a barrel from US$46.00 a barrel.
The Ministry of the Interior (MOI) is to tighten rules for candidates running for public office, requiring them to declare that they do not hold a Chinese household registration or passport, and that they possess no other foreign citizenship. The requirement was set out in a draft amendment to the Enforcement Rules of the Public Officials Election and Recall Act (公職人員選舉罷免法 ) released by the ministry on Thursday. Under the proposal, candidates would need to make the declaration when submitting their registration forms, which would be published in the official election bulletin. The move follows the removal of several elected officials who were
The Republic of China (ROC) is celebrating its 114th Double Ten National Day today, featuring military parades and a variety of performances and speeches in front of the Presidential Office in Taipei. The Taiwan Taiko Association opened the celebrations with a 100-drummer performance, including young percussionists. As per tradition, an air force Mirage 2000 fighter jet flew over the Presidential Office as a part of the performance. The Honor Guards of the ROC and its marching band also heralded in a military parade. Students from Taichung's Shin Min High School then followed with a colorful performance using floral imagery to represent Taiwan's alternate name
FOUR DESIGNATED AREAS: Notices were issued for live-fire exercises in waters south and northwest of Penghu, northeast of Keelung and west of Kaohsiung, they said The military is planning three major annual exercises across the army, navy and air force this month, with the navy’s “Hai Chiang” (海強, “Sea Strong”) drills running from today through Thursday, the Ministry of National Defense said yesterday. The Hai Chiang exercise, which is to take place in waters surrounding Taiwan, would feature P-3C Orion maritime patrol aircraft and S-70C anti-submarine helicopters, the ministry said, adding that the drills aim to bolster the nation’s offshore defensive capabilities. China has intensified military and psychological pressure against Taiwan, repeatedly sending warplanes and vessels into areas near the nation’s air defense identification zone and across
A Chinese takeover of Taiwan would severely threaten the national security of the US, Japan, the Philippines and other nations, while global economic losses could reach US$10 trillion, National Security Council Deputy Secretary-General Lin Fei-fan (林飛帆) wrote in an article published yesterday in Foreign Affairs. “The future of Taiwan is not merely a regional concern; it is a test of whether the international order can withstand the pressure of authoritarian expansionism,” Lin wrote in the article titled “Taiwan’s Plan for Peace Through Strength — How Investments in Resilience Can Deter Beijing.” Chinese President Xi Jinping’s (習近平) intent to take Taiwan by force
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