US crude falls $2.36 on stock market sell-off

09 October 2008 21:00  [Source: ICIS news]

HOUSTON (ICIS news)--NYMEX light sweet crude futures for November delivery settled on Thursday at $86.59/bbl, down $2.36 versus Wednesday’s close as the stock market continued to drag down energy prices.

Fears that the global economy may be heading into a recession outweighed the announcement that OPEC will hold an emergency meeting in November to discuss the possibility of trimming output.

November crude established an early high of $89.82/bbl and plunged to $86.12/bbl before recovering slightly on profit taking.

With the bias holding to the downside, the sell-off on the NYMEX rolled onto after-market electronic trading, and November light sweet crude sold down to $85.32/bbl before consolidating either side of $85.50/bbl.

In a recent report, the Energy Information Administration (EIA) revised downwards by 140,000 bbl/day its forecast for oil demand in 2009.

ICE Brent for November delivery bottomed out at $82.15/bbl and settled at $82.66/bbl, down $1.70 from Wednesday. It then followed the American benchmark down to establish a new low of $81.61/bbl.

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By: Ignacio Sotolongo
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