Oil price dropped because of recovery fears
The price of crude oil fell to less than 72 dollars per barrel and it has been the lowest level of oil price in more than last two months. As per market experts, the main reason behind this drop was the increasing fears about the state of global economic recovery.
After the disappointing data of US home sales, the US has seen a drop of 2% or 1.4 dollars in its light crude oil which fell down to 71.66 dollars per barrel.
Meanwhile the London Brent also reported the same amount of drop in its oil price and its crude oil price fell down to 72.26 dollars per barrel. The oil price has fallen more than 10 dollars per barrel in the month of August.
The existing home sales in the US has also fallen down by 27% and slipped down to its 10 years low. Both the falls in the home sales and oil price have pushed the Wall Street down.
The Dow Jones industrial average index has also seen a fall of 1.3% or 134 points and reached to 10.045 points creating fears over the economic recovery of the country.