Monday, December 22, 2008

Oil Falls Nearly 6 Percent

From Yahoo News/Reuters:

NEW YORK (Reuters) – Oil dropped nearly 6 percent to below $40 a barrel on Monday on signs the global economic malaise was slowing fuel demand further.

Apparent oil consumption in China fell by 3.2 percent in November from a year ago, according to Reuters calculations, while crude imports into the world's No. 2 energy consumer dropped to the lowest level this year.

U.S. crude for February delivery settled down $2.45 at $39.91 a barrel. The January contract touched $32.40 on Friday before expiring, the lowest since February 2004, weighed down by rising stock levels at the Cushing, Oklahoma, delivery point for the New York Mercantile Exchange contract.

London Brent crude settled $2.55 lower at $41.45 a barrel.

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