Crude Down On Recession Fears
Crude oil is down again this morning, and has now fallen by more than 50 percent from its early July record high of $147/barrel, after a global stock plunge heightened concern bank bailouts won't prevent a recession.
Asian stocks slumped overnight following after Standard & Poor's 500 Index had its biggest loss since 1987 yesterday.
OPEC cut its 2009 demand forecast because of "dramatically worsening" financial market conditions. OPEC, supplier of more than 40 percent of the world's oil, cut its forecast yesterday for oil demand next year by 450,000 barrels a day, or 0.5 percent, to 87.21 million barrels a day.
A government report due later today is expected to show that U.S. crude-oil and gasoline inventories rose last week.
November crude was at $72.30/barrel, down $2.24 at 07.45am London time. The November contract expires today.
Asian stocks slumped overnight following after Standard & Poor's 500 Index had its biggest loss since 1987 yesterday.
OPEC cut its 2009 demand forecast because of "dramatically worsening" financial market conditions. OPEC, supplier of more than 40 percent of the world's oil, cut its forecast yesterday for oil demand next year by 450,000 barrels a day, or 0.5 percent, to 87.21 million barrels a day.
A government report due later today is expected to show that U.S. crude-oil and gasoline inventories rose last week.
November crude was at $72.30/barrel, down $2.24 at 07.45am London time. The November contract expires today.
