Crude falls $3/bbl on concerns over demand

15 October 2008 13:35  [Source: ICIS news]

LONDON (ICIS news)--Crude prices fell by more than $3/bbl on Wednesday to take Brent crude on London’s ICE Futures below $72/bbl due to ongoing concerns over a fall in future demand.

 

By 12:00 GMT, November Brent crude had hit a low of $71.43/bbl, a loss of $3.10/bbl from the Tuesday close of $74.53/bbl, before recovering to around $71.80/bbl.

 

At the same time, November NYMEX light sweet crude futures were trading around $75.55/bbl, having hit a low of $75.30/bbl, a loss of $3.33/bbl from the previous close.

 

As the equity markets, which lately have been a measure of confidence in the global economy, retreated from an earlier rally, oil prices extended the losses posted the previous session.

 

On Tuesday, the announcement the US government was going to take an equity stake in banks to rescue the system triggered a rally on global stock markets but the euphoria was shortlived and NYMEX closed $2.56/bbl down versus Monday.

By: Giovanni Coiro
+44 20 8652 3214

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