Tuesday, September 16, 2008

Oil Prices Continue To Drop

Oil prices continue to drop.

Oil prices extended their retreat, shedding $10 a barrel in a violent, two-day slide as Wall Street dims hope for a swift economic recovery and signals another drop in US energy demand.

Light, sweet crude for October delivery fell $4.56 to settle at $91.15 a barrel on the New York Mercantile Exchange, after earlier dipping to $90.51, its lowest level since February 8.

On Tuesday prices closed below $100 for the first time in six months, shedding more than $5 and wiping out all of oil's gains for the year.

Crude has fallen about $55, or 37 per cent, since shooting above $147 on July 11.
Crude Oil Rises in New York on Speculation of AIG Rescue Plan.

Sept. 17 (Bloomberg) -- Crude oil rose from a seven-month low amid speculation the Federal Reserve may rescue American International Group Inc. from collapse.

Oil climbed as U.S. stocks advanced after floor trading closed on the New York Mercantile Exchange yesterday. U.S. crude-oil and fuel inventories probably fell last week as production platforms and refineries on the Gulf of Mexico shut because of hurricanes Gustav and Ike, a Bloomberg survey showed.

``The rebound in the stock market probably encouraged some buying, and then I think we're also setting up for the DOE report, which should show lower U.S. inventories in the major categories,'' said Tim Evans, an analyst with Citi Futures Perspective in New York.

Crude oil for October delivery rose $1.60, or 1.8 percent, to $92.75 a barrel at 9:15 a.m. Sydney time on the Nymex after touching $92.98. Crude futures declined more than $10 a barrel in the past two days on concern that financial market disruptions may weaken the global economy and cut fuel demand.

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