Oil falls on fresh demand concerns

15 September 2009

Crude oil prices continued to fall on Monday as concerns remained over the strength of world energy demand.

The market has been boosted lately by growing optimism that the global economy may be set to recover from the recent crisis, helping to increase fuel consumption.

However, inventory levels have remained high, meaning prices have struggled to push far beyond the $70 (€47.91) a barrel mark.

The market came under further downward pressure on Monday as stock markets slumped following a trade dispute between the US and China that could hamper economic recovery.

US crude for October delivery eventually settled down 43 cents at $68.86 a barrel, extending Friday's drop of $2.65. London Brent crude fell 25 cents to close at $67.44.

Despite the downward trend, the cost of home heating oil edged higher, ending up 1.65 cents at $1.7422 a gallon.

According to Bloomberg, Saudi oil minister Ali al-Naimi said last week that current crude prices around $70 a barrel are satisfactory for both consumers and producers.

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