Crude falls to 8-month low on global demand fears

06 October 2008 09:05  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures fell more than $3/bbl to their lowest levels for eight months on Monday due to rising concern that the deepening credit crisis will reduce global oil demand.

 

At 07:13 GMT, November NYMEX light sweet crude futures were traded at $90.47/bbl, down $3.41/bbl on last Friday’s settlement level, having earlier hit a low of $90.27/bbl, down $3.61/bbl.

 

At the same time, November Brent on London’s ICE Futures was traded at $87.00/bbl, down $3.25/bbl on last Friday’s settlement price, having earlier hit a low of $86.90/bbl down $3.35/bbl.

 

Crude is hovering at its lowest level since early February this year, after climbing to record highs of above $147/bbl in mid-July.

 

Concerns have grown the credit crisis will not only dent demand in the US and other industrialised economies but could also threaten uptake from developing economies such as China, which has driven the increase in global oil demand in recent years.

 

Meanwhile, some producers raised the issue the crude market was over supplied. Over the weekend, Iran said that OPEC members were producing too much crude and that prices below $100/bbl were too low. Iran, which is one of the more hawkish members of OPEC, asked members to adhere to their agreed quotas.

By: James Dennis
+65 6780 4359

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