Business | Oil & Gas
Oil trades close to $90 after touching seven-month low
Turmoil on financial markets will undermine demand and send investors into safer havens, analyst says.
- Reuters
- Published: 23:52 September 16, 2008
London: Oil fell 3 per cent on Tuesday on rising concern that turmoil in global financial markets will further undermine fuel demand and send investors into safer havens.
Reports that US oil infra-structure had escaped major damage from Hurricane Ike also weighed on markets, which fell more than $5 on Monday after Leh-man Brothers sought bankruptcy protection.
US crude for October traded down $2.66 to $93.05 a barrel by 1501 GMT, off a seven-month low of $90.55 a barrel earlier in the session.
November Brent crude fell $2.97 to $91.27 a barrel.
"If the economic turmoil continues, demand will continue to drop," said Jonathan Kornafel, Asia Director at US-based options trader Hudson Capital Energy. Slowing demand in the US and other top consumer nations has sent crude prices tumbling from record highs over $147 a barrel in July.
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