Current Crude Prices Fall below $90

The current crude oil prices on the NYMEX have fallen below $90 on investor concerns about demand in the midst of increasing worries regarding the debt crisis in the euro zone.

The main contract in New York for delivery in November shed $1.39 from its rate during the previous day’s trading to end at a crude price per barrel of $86.99. This is the first time since the 2nd of August that the crude price per barrel ended a trading session below $90.

In London, the current crude oil price of Brent for November delivery posts a 41-cent fall to finish the trading at $110.04 per barrel.

Jim Ritterbusch, analyst of Ritterbusch Associates, said that the basis of the huge sell-off was concerns in the euro zone. ¬†Others say that speculation regarding fresh stimulus measures had supported the crude market quite well through most parts of quarter three. Now that the stimulus measures have already been announced, the focus has shifted more to the fundamental condition which isn’t as promising as expected.

Further, anti-austerity demonstrations in Greece and Spain are aggravating the angst felt by the markets. According to some, the reality of the current scenario is starting to wear on investors as markets tackle the economic and political truths of the policies that Europe is pursuing.

Recent austerity demonstrations in Spain have been followed by more protests and a broad strike in Greece as people are tired of carrying the difficulty of spending reductions and tax increases against a sluggish economic condition and high unemployment.

Traders brushed aside the latest weekly fuel supplies report of the US government showing an unexpected fall in crude inventories by 2.4 million barrels during the week that ended on the 21st of September. Instead, they seem more worried about the demand projection from Europe and China and selling pressure established on news of violence breaking out during the present strike in Greece.