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Oil plunges on demand concerns

29 October 2009 08:01 (UTC +04:00)

Bakuâ€“ APA-Economics. Oil fell for a second day in New York after an increase in U.S. crude and gasoline inventories raised concern fuel demand has yet to recover.
Crude oil declined the most in a month yesterday as an Energy Department report showed that U.S. gasoline stockpiles climbed 1.62 million barrels last week, the Energy Department said. A 1 million-barrel drop was forecast, according to a Bloomberg News survey. Prices also dropped as the dollar gained against the euro.
Crude oil for December delivery fell as much as 43 cents, or 0.6 percent, to $77.03 a barrel, and traded at $77.23 at 1:09 p.m. Singapore time on the New York Mercantile Exchange. Yesterday, the contract dropped $2.09, or 2.6 percent, to $77.46, the lowest settlement since Oct. 14. Prices have gained 73 percent this year.
The dollar was at $1.4722 per euro from $1.4706 after reaching $1.4683, the strongest level since Oct. 12. A stronger dollar reduces the appeal of commodities to investors looking for an inflation hedge.
Brent crude oil for December settlement fell as much as 29 cents, or 0.4 percent, to $75.57 a barrel on the London-based ICE Futures Europe exchange, and traded at $75.68 at 1:01 p.m. Singapore time. Prices dropped $2.06, or 2.6 percent, to end the session at $75.86 a barrel yesterday.