Crude oil closed at lowest point in nearly 17 months yesterday as
investors worried that a global economic slowdown would pare the energy demand
in long term.
Light, sweet crude for December delivery dropped to as low as 61.30 U.S.
dollars a barrel before edging up to settle at 63.22 dollars a barrel, trading
down 93 cents, on the New York Mercantile Exchange. It is oil's lowest
settlement since May 29, 2007.
The fluctuation of oil prices has been closely following the performance of
stocks as investors grew more concerned about economic conditions than other
factors influencing oil. With Wall Street tumbling and major indexes in Asia and
Europe ending sharply lower, crude futures continued its sliding yesterday. Even
the sizable output cut of 1.5 million barrels a day by OPEC failed to ease the
sentiment.
Moreover, the dollar rallied to its highest point in more than two and half
years against the euro yesterday, which also contributed to the falling of the
oil price.
In London, Brent crude for December delivery fell 64 cents to settle at 61.41
dollars a barrel after tumbling near 60 dollars a barrel on ICE Futures
Exchange.
