Oil futures prices sank to their lowest level in nearly a month Monday on a continuation of the selloff sparked last week by rising U.S. supplies of crude and easing fears about the refining industry's ability to satisfy heating oil demand.
The downward momentum appeared to overshadow concerns traders had about a possible strike in oil-rich Nigeria and a new setback to Russian oil giant Yukos, which was reportedly hit with $10 billion in new tax claims on Monday.
December crude futures declined by $1.63 to settle at $50.13 per barrel on the New York Mercantile Exchange — the lowest closing price since Oct. 4, when futures settled at $49.91 per barrel. Prices had fallen as low as $49.30 a barrel in intraday trade. In London, December Brent crude futures fell $1.92 to $47.06 per barrel.
"We could move a couple of bucks more on the downside," said BNP Paribas Futures trader Tom Bentz.
Bentz added that worldwide oil supplies remain tight and that, therefore, "I'd be a little cautious" about declaring the beginning of the end of high prices. "The reality is that not a lot has changed fundamentally," he said.
|