- - Monday, October 17, 2011

OIL

Elusive Europe debt plan causes crude prices to fall

NEW YORK — Oil prices fell Monday as Europe’s debt crisis fueled concerns about future energy demand.

Benchmark crude finished down 42 cents at $86.38 per barrel in New York, while Brent crude, used to price international varieties of oil, fell $2.07 to end at $110.16 a barrel in London.

Oil has tumbled about 24 percent since May on fears of a slowdown in the global economy. Investors focused on weak gasoline demand in the U.S. and budget problems in Greece.

Prices started to rise last week as European leaders appeared to be near a turning point. On Monday, German finance chief Wolfgang Schaeuble dampened expectations that they would hammer out a comprehensive solution at an upcoming summit.

MANUFACTURING

Factory output increases on truck, airplane demand

Factory output rose for a third straight month in September, a sign the economy is growing slowly. Manufacturers made more airplanes, trucks and home electronics to meet rising demand.

Output at U.S. factories increased 0.4 percent in September after gaining 0.3 percent in August, the Federal Reserve said Monday.

Production of business equipment rose 1 percent, the third straight increase of 1 percent or more. Transit equipment and information processing equipment drove the gain.

Auto output increased for a third straight month, home electronics production for a fifth.

EUROPE

Central bank economist calls for eurozone controls

FRANKFURT, Germany — The European Central Bank’s departing chief economist is saying that more European Union control over nations’ budgets is the way to avoid another eurozone debt crisis.

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