Statoil, Kvaerner and other Norwegian oil industry stocks slid yesterday, on traders' concern that the global economy will not rebound fast enough to prevent oil prices falling in the second half of the year as producers boost output.
“Today's oil price is strong, but the market is pricing in a fall in the second half,” said Rune Juliussen, an analyst at the Oslo based brokerage Carnegie. “The fear is that the international economy and demand for oil won't rise as much as has been predicted.”
The US economy which expanded at a 6.1 percent annual rate in the first quarter will slow to 2.7 percent in the second quarter, according to one survey. The rebound in the world's largest economy is expected to fuel growth in other countries.
European consumer confidence declined last month as unemployment rose, the European Union said yesterday. Alcatel SA, Cap Gemini SA and Deutsche Bank AG said in the past week they will cut 19,200 jobs.