US crude falls 10% on stock, commodities sell-off

10 October 2008 20:53  [Source: ICIS news]

HOUSTON (ICIS news)--NYMEX light sweet crude futures for November delivery settled on Friday at $77.70/bbl, down $8.89 or 10% versus Thursday’s close, as prices were dragged down by a sell-off in stocks and commodities and by the strengthening US dollar.

Fears that a global recession will dry out credit and affect energy demand triggered a round of length liquidation to cover margin calls.

OPEC still plans to hold an emergency meeting in November to discuss the financial crisis and defend prices by perhaps trimming output.

With panic selling sending prices down in search of a bottom, November crude established an overnight high of $85.13/bbl but plunged to $77.09/bbl before rebounding slightly on late bottom picking.

ICE Brent for November delivery followed the downward trend, bottoming out at $73.14/bbl before settling at $74.09/bbl, down $8.57 from Thursday.

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By: Ignacio Sotolongo
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