Oil prices swing lower
Sunday, 28 September 2008
LONDON, Sept 27 (AFP): Oil prices fell Friday, reversing the previous day's gains after hopes were dashed that the US Congress was about to pass a massive financial bailout package, dealers said.
New York's main contract, light sweet crude for November delivery, fell 2.70 dollars to 105.32 dollars per barrel after hitting an intra-day low of 105 dollars.
London's Brent North Sea crude for November shed 2.45 dollars to 102.15 dollars.
Both contracts had jumped by more than two dollars on Thursday on signs a massive US government financial bailout was nearing approval, diminishing the risk of an economic collapse of the world's biggest energy consumer.
However, fresh uncertainty emerged today over whether the bailout package would receive Congressional approval, which helped to pull prices lower.
"It seems like people who are watching the oil market are worried there could be some blockade" over the deal, said Dave Ernsberger, Asia director of global energy information provider Platts.
The package is necessary if oil prices are to regain their upward momentum, Ernsberger added.
Oil prices have fallen heavily from record levels above 147 dollars in July on worries the global economy is slowing.
New York's main contract, light sweet crude for November delivery, fell 2.70 dollars to 105.32 dollars per barrel after hitting an intra-day low of 105 dollars.
London's Brent North Sea crude for November shed 2.45 dollars to 102.15 dollars.
Both contracts had jumped by more than two dollars on Thursday on signs a massive US government financial bailout was nearing approval, diminishing the risk of an economic collapse of the world's biggest energy consumer.
However, fresh uncertainty emerged today over whether the bailout package would receive Congressional approval, which helped to pull prices lower.
"It seems like people who are watching the oil market are worried there could be some blockade" over the deal, said Dave Ernsberger, Asia director of global energy information provider Platts.
The package is necessary if oil prices are to regain their upward momentum, Ernsberger added.
Oil prices have fallen heavily from record levels above 147 dollars in July on worries the global economy is slowing.