Crude falls to a two-month low at $88.67 a barrel as global stocks nosedive
21 Jan 2008
Mumbai: Oil slid by almost $2 to a six-week low below $89 a barrel amidst mayhem on global stock markets amidst mounting concern over an economic slow-down led by the United States.
Oil was down over 11 per cent from a record $100.09 a barrel on January 3 while gold and copper also fell. Traders expected a global slow-down to cut demand for energy and metals.
The global stock price index MSCI World Index fell 2.3 per cent today.
US light crude fell for February delivery declined as much as $1.90, or 2.1 percent, to $88.67 a barrel in electronic trading on the New York Mercantile Exchange.
London Brent crude down $1.29 at $87.94. Brent for March settlement fell as much as $1.68, or 1.9 per cent, to $87.55 a barrel on the ICE Futures Europe exchange. The contract traded at $87.99 in London in afternoon trade.
European stocks sank 5.6 per cent, Toronto stocks were down 3.7 per cent and the worst sufferer the Bombay Stock Exchange Sensitive index sank as much as by 7.41 per cent.
