March 24, 2008

BUT IS $40 STILL THE FLOOR?:

Oil price drops again (Bloomberg News, March 24, 2008)

Oil is likely to slide further this spring as slowing economic growth encourages traders to exit commodity markets, Goldman Sachs said in a report Thursday. A government report on Wednesday showed that U.S. fuel demand in the four previous weeks was down 3.2 percent from a year earlier.

"We can look forward to a continuation of the commodity downtrend we saw last week," said Eric Wittenauer, an energy analyst at Wachovia Securities in St. Louis, Missouri. "The economic slowdown and concern about demand are pushing prices lower."

Crude oil for May delivery fell 31 cents to $101.53 a barrel on the New York Mercantile Exchange. Futures prices rose to $111.80 a barrel on March 17, the highest since trading began in 1983. Oil is up 63 percent from a year ago.

Posted by Orrin Judd at March 24, 2008 2:24 PM
Comments for this post are closed.