Thursday, September 11, 2008
LONDON (Reuters) – Oil prices fell toward $100 on Thursday, weighed down by a stronger dollar and concerns over weakening demand.
U.S. crude fell as low as $100.10, the lowest since early April, and was trading $1.73 down at $100.85 by 11:01 a.m. EDT.
London Brent slipped to $96.99, the lowest level since early March. It was trading $1.37 lower at $97.60 at 11:02 a.m. EDT
(ARTICLE CONTINUES BELOW)
On Wednesday, U.S. crude touched $101.36, the lowest price since early April, despite a surprise production cut by OPEC of around half a million barrels per day.
Pressure came from a rising dollar and a report from the International Energy Agency (IEA), which lowered its oil demand growth forecasts due to a slowing global economy.
U.S. government data on Wednesday showed falls in oil product demand.
“Improvements in sentiment have not been seen even after OPEC’s pledge on production cuts,” Japan’s Mizuho Corporate Bank said in a research note.
“A bearish development is likely to continue due to mid-term factors of lower demand amid a slowing global economy. The psychological $100 level will be tested.”