Global Oil Prices fall to Eight-Month Low
TNI Bureau: Global oil prices fell to eight-month low on Friday just above $100 a barrel. However, the decline in Indian domestic currency increased a little as it gained 55.89/90 against US dollar.
The sharp fall in global oil prices indicated that the oil firms will stay out of the market. The traders assume if oil prices will continue to fall, it would reduce demand of dollar by oil firms by nearly $2 to $3 billion per month.
Market analysts said that the sharp fall in global oil prices was due to weak manufacturing activity data from China and euro zone debt crisis that reduced the fuel demand.
While Brent crude fell by $1.60 to $100.27 on Friday, US oil slipped $1.07 to $85.46 after losing more than 17 percent last month. Earlier, Brent crude dropped to $100.10, which is the weakest since October 4.
Jim Ritterbusch, president at Ritterbusch & Associates, of the Chinese data, admitted that it has been a dismal week so far and China has not hit the bottom. He said that the country will witness some more pressure on prices as Brent is likely to drop below $100 and WTI expected to dip further to around $83.