<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>While the Familee still pegs electricity tariffs on $155 oil? CCB!
Nov 11, 2008
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'News that China's crude oil imports jumped by 28 percent in October from a year ago and that militants are threatening to renew attacks on oil facilities in Nigeria failed to lift prices,' said Sucden analyst Michael Davies. -- PHOTO: AGENCE FRANCE-PRESSE
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LONDON - OIL prices slid beneath 57 dollars (S$85.41) a barrel in London trading on Tuesday following further gloomy economic news in the United States, the world's biggest energy consuming nation, traders said.
Brent North Sea crude for delivery in December dropped 2.38 dollars to 56.70 dollars a barrel on London's InterContinental Exchange (ICE).
On the New York Mercantile Exchange (NYMEX), light sweet crude for December slid 2.44 dollars to 59.97 dollars a barrel. It earlier hit 59.60 dollars, the lowest level since March 2007.
'News that China's crude oil imports jumped by 28 percent in October from a year ago and that militants are threatening to renew attacks on oil facilities in Nigeria failed to lift prices,' said Sucden analyst Michael Davies.
Crude oil prices had closed up almost two dollars on Monday, with sentiment boosted by hopes that China's huge economic stimulus package would lift demand for energy.
But traders banked profits on Tuesday as poor financial data out of the United States reignited fears about recession.
China had over the weekend announced a four-trillion-yuan (S$877 billion) stimulus package aimed at boosting its economy would mean greater demand for commodities including oil, dealers said.
The Asian giant is a major buyer of commodities and its thirst for oil to fuel runaway economic growth in recent years was a key factor behind the rise in prices to record levels above 147 dollars in July.
Opec president Chakib Khelil indicated over the weekend another round of production cuts may occur should oil prices remain below the cartel's preferred range of 70 to 90 dollars.
The Organisation of the Petroleum Exporting Countries (Opec), which pumps more than 40 percent of the world's crude, announced in October that its daily output would be cut by 1.5 million barrels to 27.3 million barrels per day from November.
The production cuts were aimed at shoring up prices which had fallen sharply from July's highs on fears energy demand would be hit by slowing economic growth.
Opec's next meeting is scheduled to take place in Oran, Algeria, on December 17. Before that, Opec's Arab members will meet in Cairo on November 29, Mr Khelil said. Investors were also gearing up for the latest weekly snapshot of US energy inventories, delayed a day until Thursday because of Veterans Day on Tuesday. -- AFP
Nov 11, 2008
</TR><!-- headline one : start --><TR>Oil tumbles below US$57 <!--10 min-->
</TR><!-- headline one : end --><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
'News that China's crude oil imports jumped by 28 percent in October from a year ago and that militants are threatening to renew attacks on oil facilities in Nigeria failed to lift prices,' said Sucden analyst Michael Davies. -- PHOTO: AGENCE FRANCE-PRESSE
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->
LONDON - OIL prices slid beneath 57 dollars (S$85.41) a barrel in London trading on Tuesday following further gloomy economic news in the United States, the world's biggest energy consuming nation, traders said.
Brent North Sea crude for delivery in December dropped 2.38 dollars to 56.70 dollars a barrel on London's InterContinental Exchange (ICE).
On the New York Mercantile Exchange (NYMEX), light sweet crude for December slid 2.44 dollars to 59.97 dollars a barrel. It earlier hit 59.60 dollars, the lowest level since March 2007.
'News that China's crude oil imports jumped by 28 percent in October from a year ago and that militants are threatening to renew attacks on oil facilities in Nigeria failed to lift prices,' said Sucden analyst Michael Davies.
Crude oil prices had closed up almost two dollars on Monday, with sentiment boosted by hopes that China's huge economic stimulus package would lift demand for energy.
But traders banked profits on Tuesday as poor financial data out of the United States reignited fears about recession.
China had over the weekend announced a four-trillion-yuan (S$877 billion) stimulus package aimed at boosting its economy would mean greater demand for commodities including oil, dealers said.
The Asian giant is a major buyer of commodities and its thirst for oil to fuel runaway economic growth in recent years was a key factor behind the rise in prices to record levels above 147 dollars in July.
Opec president Chakib Khelil indicated over the weekend another round of production cuts may occur should oil prices remain below the cartel's preferred range of 70 to 90 dollars.
The Organisation of the Petroleum Exporting Countries (Opec), which pumps more than 40 percent of the world's crude, announced in October that its daily output would be cut by 1.5 million barrels to 27.3 million barrels per day from November.
The production cuts were aimed at shoring up prices which had fallen sharply from July's highs on fears energy demand would be hit by slowing economic growth.
Opec's next meeting is scheduled to take place in Oran, Algeria, on December 17. Before that, Opec's Arab members will meet in Cairo on November 29, Mr Khelil said. Investors were also gearing up for the latest weekly snapshot of US energy inventories, delayed a day until Thursday because of Veterans Day on Tuesday. -- AFP
