US crude falls $4.56 on financial market worries

16 September 2008 21:37  [Source: ICIS news]

HOUSTON (ICIS news)--NYMEX light sweet crude futures for October delivery settled on Tuesday at  $91.15/bbl, down $4.56 as investors liquidated positions in commodities to cover losses.

The sell-off across the energy complex as a result of the financial crisis overshadowed supply disruptions caused by Hurricane Ike in the Gulf of Mexico.

Several offshore rigs were reported damaged or destroyed and several refineries remained shut down or were operating at reduced rates. However, initial reports suggested that overall damage to the energy infrastructure was not severe.

Crude oil futures extended the losses and hit another seven-month low at $90.51/bbl after having established an overnight high of $94.32/bbl.

Stock markets also fell on Tuesday after the US Federal Reserve held interest rates unchanged and the US dollar strengthened versus the euro.

ICE Brent for November delivery plunged to $88.90/bbl and settled at $89.22/bbl, down $5.02.

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By: Ignacio Sotolongo
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