Oil tumbles on economic concerns

• Source: Xinhua
• [08:04 September 14 2009]
• Comments

Crude tumbled more than 4 percent last Friday on fears that the current economic conditions could not justify a higher oil price.

Light, sweet crude for October delivery plummeted $2.65, or 3.7 percent, to settle at 69.29 dollars a barrel on the New York Mercantile Exchange. The contract struck an intra-day low of 68.82 dollars a barrel in the afternoon.

The dollar fell to a new 2009 low against the euro Friday, however it failed to boost oil prices higher.

 The sharp drop on Friday gave up most of the gains crude made this week, leaving the prices near 70 dollars a barrel.

Oil has traded around 70 dollars a barrel for most of the last two months as investors struggle to gauge how robust the recovery will be. As many data suggests the economy is heading toward recovery, some dealers are still worried that the oil prices may have gotten too high and cannot be justified by the current economic conditions.

In London, Brent Crude for October delivery dropped 2.27 dollars to 67.59 dollars a barrel on the ICE Futures exchange.