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Oil prices slide, Wall Street Down

Stocks slump on Wall Street following a sharp decline in oil prices which is feared could reverse the energy sector is soaring high. Japan's nuclear crisis also gave negative sentiment.

Analysts worry about a rally of energy stocks had gone too far ahead of the financial reporting season, and the slump in oil prices could trigger further selling.

"The leader (of stocks) has occurred in the longest period in that sector (energy) are strongly associated with global growth and commodity prices. So once the distance of commodities begin to spin, then the shares start triggered to participate," said Robert Van Batenburg, head of research Louis Capital stock as quoted by Reuters, 13 April 2011.

On 13 April 2011 trading, The Dow Jones industrial average closed down 117.53 points decline (0.95%) to the level 12263.58. The broader Standard & Poor's 500 index also dropped 10.30 points (0.78%) to a level of 1314.16 and the Nasdaq fell 26.72 points (0.96%) to a level of 2744.79.

World oil prices continued to fall yesterday, after the International Energy Agency warned high oil prices of late could cut global energy demand.

Light sweet crude May delivery lost 3.67 dollars to U.S. $ 106.25 per barrel. Brent Oil May delivery sank 3.06 dollars to U.S. $ 120.92 per barrel.

"The focus has shifted from the unrest in the Middle East that have helped increase oil prices to their highest point since September 2008," said Matt Smith, an analyst with Summit Energy was quoted as saying by AFP.

Stocks falling energy sector, with energy index S & P 500 recorded dropped to 3%.

In addition to the energy sector, prices of other commodities stocks also weakened. Materials Index S & P lost 1.4%, with Rio Tinto shares fell 2.3%, Freeport-McMoRan Copper & Gold Inc. dropped 3.1%.

Trade moderate walk, with transactions on the New York Stock Exchange reached 7.53 billion shares, below the daily average last year which amounted to 8.47 billion shares.

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