Oil Drops Near Two-Week Low on Signals Demand Growth Slowing

Oil dropped to a two-week low as debt crisis in Europe worsens and after OPEC’s secretary-general indicated that global consumption of oil is rising less than expected.

The market news is quoted as saying:

Crude dropped as much as 3.6 percent as investors questioned whether Greece would receive a payment to help it avoid default. OPEC Secretary-General Abdalla El-Badri also said in Dubai that members that raised output to make up for lost Libyan supply will start to cut back as output resumes.

“Crude has been knocked down on a combination of Greek concerns and bearish comments out of OPEC,” said Matt Smith, a commodities analyst with Summit Energy Services Inc. in Louisville, Kentucky. “Concerns about Greece are causing the euro to sell off hard and the secretary-general of OPEC came out with a double whammy on production cutbacks and demand growth.”

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