Crude Oil Prices Drop Below $50 Per Barrel

Crude oil drops below 50 U.S. dollars

2008-11-20 23:21:40

NEW YORK, Nov. 20 (Xinhua) --

Crude oil dipped below 50 U.S. dollars per barrel Thursday morning as concerns over slumping energy demand continued to weigh on the market.

Light, sweet crude for December delivery slid 3.71 dollars to 49.91 dollars a barrel on the New York Mercantile Exchange shortly after morning trading started. It is the lowest trading price since January 2007.

The oil market has been ruled by bearish sentiment as the global economic downturn has reduced the demand for fuel products.

On Wednesday, the U.S. Department of Energy reported a larger than expected increase in crude stockpiles during last week, which reinforced investors' worries.

Moreover, crude futures have been closely following the performance of the stocks. With major indexes in Wall Street tumbling to record lows, oil prices are losing support as investor confidence wanes.

In London, Brent crude for January delivery fell 2.49 dollars to 49.23 dollars a barrel on the ICE Futures Exchange.

Editor: Yan

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