LONDON: New York oil plunged under $89 per barrel yesterday, nearing a two-month low on demand concerns arising from the eurozone debt crisis which is still plaguing Greece and Spain, dealers said.
The market also dived as fresh data sparked fresh concern over the health of the United States economy, which is the world’s biggest crude consumer.
New York’s main contract, light sweet crude for November, dived to $88.95 per barrel — the lowest point since August 3. It later stood at $89.40, down $1.97 from Tuesday’s closing level. Brent North Sea crude for delivery in November retreated $1.65 to $108.80 a barrel in late afternoon trade in London.
Traders set aside data showing that American crude stockpiles unexpectedly plunged in the week ending September 21. The US government’s Energy Information Administration (EIA) said crude inventories sank 2.4 million barrels. That confounded market expectations for a gain of 1.1 million barrels, according to analysts polled by Dow Jones Newswires.
AFP
