The energy commodity endured losses of nearly 6 percent when Morgan Stanley and Deutsche Bank slashed projections for the globe's economic expansion. On top of the reduction to crude oil futures, stocks also plunged when the powerhouse financial institutions adjusted their projections, which tend to reflect recent concerns about growth and development being stymied.
"The most recent economic data is what's guiding all asset classes," chief energy economist Adam Sieminski of Deutsche Bank in Washington told Bloomberg. "This means that just about everything but gold is falling right now."
At 4:49 p.m. on Thursday, crude oil futures slipped 3.6 percent, a $3.98 fall to $106.62 per barrel.
Dow Jones Newswires reports economic data indicating a global downturn has been steadily coming in. The Philadelphia Federal Reserve indicated manufacturing largely fell in August. Yet with the price reductions for oil futures, one consultant said purchasing might be a good idea should the energy commodity strike values of $70 per barrel.
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