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.
- A d v e r t i s e m e n t
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.”