23rd September 2011
Oil futures fell to a six-week low in trading yesterday (September 22nd), dropping below the $80 per barrel mark for the first time since August.
Peter Donovan, vice president and trader at Vantage Trading, noted the gloomy outlook set out by the Federal Reserve earlier in the week is driving down the price at present, with analysts and traders still feeling for a floor price in the commodity.
"What we're seeing here is a selling off and testing the lows from back in the July-August timeframe," Les Klukas, a market analyst with Country Hedging, told the Wall Street Journal.
"I think you're seeing the final panic taking place. The market expected a bounce and it didn't happen."
Earlier in the month, benchmark oil prices were being pushed up by a lack of demand coupled with the impact of a weaker dollar, reaching $89.66 a barrel on September 13th.
However, light, sweet crude for November delivery yesterday fell by $1.71 (2.12 per cent) to $78.80.
Posted by Andrew Johnston
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