US crude falls $3/bbl on bailout failure jitters

30 September 2008 09:29  [Source: ICIS news]

SINGAPORE (ICIS news)--US crude futures dipped more than $3/bbl on Tuesday, after slumping nearly 10% the previous day amid heightened fears in the financial markets following the failure of the US government’s bailout plan to gain Congressional approval.

 

At 8:00 GMT on Tuesday, November NYMEX light sweet crude futures were trading at $94.81/bbl, down $1.56/bbl on Monday’s settlement level, having earlier fallen to a low of $93.36/bbl, down $3.01/bbl.

 

At the same time, November Brent on London’s ICE Futures was trading at $92.70/bbl, down $1.28/bbl on Monday’s settlement price, having earlier hit a low of $91.10/bbl, down $2.88/bbl.

 

Crude prices have dropped around 35% since hitting record highs above $147/bbl in mid-July.

 

The unexpected rejection by Congress of the US government’s $700bn rescue plan for the troubled financial sector served to reinforce concerns the US economy was heading for recession.

 

With the financial crisis rapidly becoming a global issue, following bank failures in Europe, investors moved out of crude oil and other commodities amid concerns of reduced demand from the US and other industrialised countries.

 

Meanwhile, the US dollar made gains against the euro on Tuesday, trading well above €0.6960 at one stage.

 

By: James Dennis
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly