Crude prices plunge on demand concerns

www.chinaview.cn 2008-10-16 04:26:51  

    NEW YORK, Oct. 15 (Xinhua) --

Crude futures fell below 75 U.S. dollars a barrel Wednesday, hitting a 13-month-low, on concerns that economic weakness will curb demand for energy consumption.

    The U.S. government reported Wednesday that retail sales plunged in September by 1.2 percent in the United States, the world's largest energy consumer.

    The Commerce Department said that crude inventories rose by 0.3 percent in August, the smallest gain in five months, a possible indication of concerns about the slowing economy.

    Federal Reserve Chairman Ben Bernanke said Wednesday that efforts taken by the U.S. government to stabilize financial markets and free current credit crunch probably won't lead to a prompt economic rebound.

    "Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," Bernanke told the Economic Club of New York.

    Meanwhile, the Organization of the Petroleum Exporting Countries cut its forecasts for world demand for crude next year in its latest monthly report.

    JP Morgan cut its average oil price forecast for 2009 to 74.75 dollars a barrel, citing the weak economic outlook.

    Light, sweet crude for November delivery fell 4.09 dollars to settle at 74.54 dollars a barrel on the New York Mercantile Exchange. 

Editor: Mu Xuequan

Crude futures retreat below $79

www.chinaview.cn 2008-10-15 06:44:30  

    NEW YORK, Oct. 14 (Xinhua) --

Crude futures retreated Tuesday as investors locked profits from the previous day's rally and shifted their focus back on shrinking energy demand.

    Light, sweet crude for November delivery fell 2.56 U.S. dollars to settle at 78.63 dollars on the New York Mercantile Exchange.

    Goldman Sachs cut its year-end crude price forecast on Monday from 115 dollars a barrel to 70 dollars, while saying prices could fall as low as 50 dollars.

    Crude futures fell to a 13-month low of 77.70 dollars Friday, down 44 percent since a peak of 147.17 dollars in mid-July as the credit crisis curb the growth outlook for world economies.     

Editor: Mu Xuequan

Wall Street falls after record surge   

www.chinaview.cn 2008-10-15 05:47:27  

    NEW YORK, Oct. 14 (Xinhua) --

Wall Street ended lower Tuesday after Monday's surge as investors took profits.

    The Dow Jones average fell 76.62, or 0.82 percent, to 9,310.99,after a record 936.42-point-gain as investors shifted focus from 250-billion-U.S. dollar injection to major banks into the dismal outlook for corporate earnings and the economy.

    The Standard & Poor's 500 index fell 5.34, or 0.53 percent, to 998.01, and the Nasdaq composite index fell 65.24, or 3.54 percent, to 1,779.01.

    Financial shares rose after the U.S. Treasury's latest step to stabilize the financial system in hopes of averting further damage to the economy.

    Energy and materials companies also fell as the price of oil slid on growing worries that a recession would curb the demand for oil and other commodities.

    PepsiCo's shares tumbled 11.9 percent on weaker-than-expected earnings while Coca-Cola shares fell 7.5 percent.