16 September 2008

Crude nears 90; likely to slide further

On Tuesday, crude futures on the New York Mercantile Exchange traded up slightly but still settled in below US$93 a barrel for October delivery.

That's still US$10 below where it was two days ago. Oil is down almost 40% from July and slide 10% in the past two days alone.

With the growing economic slump, demand is expected to lessen further increasing the downward pressure on oil prices.

“I guess the market was telling us it never belonged at the $100 level in the first place and got there on a lot of hype,” said Peter Beutel, energy analyst at Cameron Hanover, New Canaan, Conn.

Refined gasoline futures hit $2.40 a gallon the NYMEX according to the Globe on Tuesday.

More to follow.