Crude futures dip almost $2/bbl on recession fear

24 March 2008 08:30  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures prices fell sharply in Asian trade on Monday, dropping by close to $2/bbl at one stage, as traders took profit on easing supply concerns amid growing worries that a recession in the US will reduce worldwide demand for crude oil.

At 06:50 GMT on Monday, May NYMEX light sweet crude futures were trading at $100.69/bbl (€65.45/bbl), down $1.15/bbl on last Thursday’s settlement price, after earlier slumping to a low of $100.02/bbl, down $1.82/bbl.

Meanwhile, May ICE Brent futures were trading at $99.15/bbl, down $1.23/bbl on the previous close, after earlier falling to a low of $98.92/bbl, down $1.46/bbl.

Supply concerns were also alleviated by comments made by Saudi Arabia over the weekend following a visit by US Vice President Dick Cheney.

Saudi Arabia said on Sunday that it was working with fellow OPEC members and consumers to stabilise oil markets and reduce the harmful impact of speculators in the market.

It also reported that it was working to expand production and refining capacity in order to maintain global economic growth.

($1 = €0.65)

By: James Dennis
+65 6780 4359

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