18th October 2011
A 0.95 percentage point fall in the price of light sweet crude was witnessed yesterday (October 17th) amid ongoing worries over the eurozone and weak data coming from China.
The commodity dropped to $85.77 per barrel in commodity trading on Tuesday - its lowest point since October 14th - after two days of strong gains earlier in the week.
Expansion of the Chinese economy stood at 9.1 per cent in the last quarter - lower than predictions of 9.2 per cent - and down from 9.5 per cent growth in the preceding three months.
As a result, investors are shifting to less risky assets amid fears that the world's second largest economy may be showing signs of weakening.
This fall in light crude value is in sharp contrast to recent strong gains for Brent Crude.
Reuters reported last week that the commodity rose to almost $109 per barrel, while at the same time, spot gold prices were up by 2.2 per cent as the commodities sector saw gains as a result of greater appetite for risk among investors.
Posted by Andrew Cottrill
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