Oil Market Outlook | Bangkok Post: business

Crude oil investors endured a nightmare week as prices tumbled on persistent concerns about the global economy and uncertainties about euro zone debt. Market tension worsened after the US Federal Reserve announced ''Operation Twist'', which analysts say will be too weak to make an impact.

Bleak outlooks from the IMF and the Fed on the world economy contributed to further slumps in crude prices. West Texas Intermediate (WTI) shed $8.11 a barrel to close on Friday at $79.85, and ICE Brent London fell $8.25 to $103.97.

Under Operation Twist, the Fed will sell $400 billion in short-term debt and invest the proceeds in long-term Treasuries over nine months to lower borrowing costs. The markets do not believe the programme is aggressive enough to spur the stalling US economy.