Crude Around USD40 After 10 Percent Drop Monday
Crude oil futures fell ten percent Monday to close at $40.15/barrel on speculation that demand will continue to erode as the global economic recession worsens.
The Dow Jones Industrial Average fell below 7,000 for the first time since 1997 last night, with European and Asia stock markets also hitting multi-year lows.
Data from the US Energy Dept on Wednesday is expected to show US stockpiles increasing yet again by around 1 million barrels to around 352 million, analysts say.
With US refineries only running at around 81-82 percent of capacity, and OPEC production cuts also filtering through to the market, these ever-increasing stocks are a clear indication of just how poor demand is.
In early trade Tuesday, crude is slightly firmer at $40.70/barrel.
The Dow Jones Industrial Average fell below 7,000 for the first time since 1997 last night, with European and Asia stock markets also hitting multi-year lows.
Data from the US Energy Dept on Wednesday is expected to show US stockpiles increasing yet again by around 1 million barrels to around 352 million, analysts say.
With US refineries only running at around 81-82 percent of capacity, and OPEC production cuts also filtering through to the market, these ever-increasing stocks are a clear indication of just how poor demand is.
In early trade Tuesday, crude is slightly firmer at $40.70/barrel.
