“Oil fell, halting its longest rally in two years, after a warning from theInternational Monetary Fund on the global economy sparked concern that prices have climbed too fast.
Futures slid as much as 1.4 percent in New York after seven days of gains. Oil’s relative strength index signaled that the longest winning streak since January 2010 may have been exaggerated. The world economy is “not out of the danger zone” amid fragile financial systems and rising oil prices, IMF Managing Director Christine Lagarde said yesterday. Prices gained the most in two months last week amid tensions with Iran, OPEC’s second-biggest producer.
“A correction is well overdue,” said Andrey Kryuchenkov, an analyst at VTB Capital in London who predicts that prices will hold at about current levels this week. Oil’s “relentless push higher could only be explained by pure supply-side fears.”
Oil for April delivery fell as much as $1.53 to $108.24 a barrel in electronic trading on the New York Mercantile Exchange and was at $108.53 at 12:40 p.m. London time. The contract gained 1.8 percent to $109.77 on Feb. 24, the highest close since May 3. Prices increased 6.3 percent last week and are 12 percent higher the past year….”
If you enjoy the content at iBankCoin, please follow us on Twitter
