Tuesday, September 16, 2008

Oil in steepest two-day slide since 2004 (under $90/Bbl for Brent)

From The Guardian:

* Oil dives to seven-month low on economic turmoil
* Several offshore U.S. oil platforms toppled by Ike
* Markets await U.S. Federal Reserve rate decision

(Updates prices, details, recasts, changes dateline from LONDON)
By Richard Valdmanis
NEW YORK, Sept 16 (Reuters) - Oil prices dropped another 4 percent on Tuesday, extending their steepest two-day slide since 2004 as mounting economic turmoil sent investors fleeing to safer havens.
The losses came despite U.S. supply disruptions after Hurricane Ike crashed through the Gulf of Mexico last week and left a quarter of the nation's energy output idled.
"People are getting out of commodities and getting into safer havens, like bonds," said Andy Lebow, broker at MF Global in New York.
U.S. crude for October traded down $4.86 to $90.85 a barrel by 1722 GMT, adding to losses of more than $5 on Monday. Prices have dropped more than 10 percent in two days, the biggest slide since Dec. 2, 2004.
Brent crude fell $5.01 to $89.23 a barrel....MORE