US crude falls $4/bbl on weak demand

08 August 2008 15:34  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures fell by more than $4/bbl on Friday to take the front month September contract below $116/bbl as the markets switched focus on weak demand as supply concerns in Turkey eased and the US dollar strengthened.

 

By 14:10 GMT, September NYMEX crude had hit a low of $115.75/bbl, a loss of $4.27/bbl from the Thursday’s close of $120.02/bbl.

 

At the same time, September Brent crude on London’s ICE Futures was trading around $113.60/bbl, having hit a low of $113.56/bbl, a loss of $4.30/bbl from the previous close.

 

Prices extended the losses on the back of the US dollar gaining ground against major currencies as the economic slowdown started to spread.

 

Moreover, the markets switched focus to poor demand after worries of supply disruptions in Turkey eased as reports suggested a fire on the BTC (Baku-Tbilisi-Ceyhan) pipeline which carries Azeri light crude from the Caspian Sea into Ceyhan could be put out by the weekend.

 

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By: Giovanni Coiro
+44 20 8652 3214

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