Oil falls to below $60 a barrel

by Amitjha | November 4, 2008 at 02:54 am

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Oil after touching $147 just few month back, is searching new bottom. Today it touched $60, which is far below the oil experts forecast.Whether sino-india led demand fueled yhe price to such high or the speculators did this to make money needs to be answered.

The price of Brent crude oil has fallen below $60 a barrel for the first time in 20 months, amid growing fears that a US recession will reduce demand.

Brent crude for delivery in December shed $1.56 a barrel in London at $58.92 while US sweet crude oil dropped $1.19 to $62.72 a barrel.

Oil prices have slumped since hitting a record of $147 a barrel in July, as consumers have cut their spending.

Members of oil cartel Opec have decided to cut output to boost prices.

"The overriding concern is the economy in the US," said Victor Shum, energy analyst at consultancy Purvin & Gertz.

Credit Suisse has cut its forecast for China's energy demand, predicting that it will remain unchanged in 2009.

There had been hopes that growth in developing nations such as China and India would help offset the slump in demand in US.