Crude prices decline on swine flu fears

• Source: cctv
• [13:34 April 28 2009]
• Comments

Crude prices fell on Monday upon fears that a swine flu outbreak in Mexico could hurt the global economy.

Oil prices opened sharply lower in the morning as investors worried that swine flu would drag the global economy. Crude futures in the New York market dropped to as low as 48.01 US dollars a barrel in the intraday session.

In 2008, a flu pandemic cost 3 trillion US dollars and resulted in a nearly 5-percent drop in world gross domestic product, according to the World Bank data.

Airline shares in stock markets were hit by expectations that the flu outbreak could slow air travel. Meanwhile, the potential for a drop in jet fuel demand is also weighing on oil markets.

Light, sweet crude for June delivery fell 1.41 US dollars to settle at 50.14 dollars a barrel on the New York Mercantile Exchange.

In London, Brent prices fell 1.35 dollars to settle at 51.67 dollars a barrel on the ICE Futures exchange.

(Xinhua)