Crude oil prices plunge by 37% in the month of October

01-Nov-08

Crude oil prices have fallen by over 37% in the month of October - Crude for December delivery dipped to US$63.12 a barrel. Prices seem poised for their largest single month drop since the commencement of trading in 1983, on concerns that the weakening economy of USA - the world´s largest energy consumer, will restrict fuel demand. The US Commerce Department has reported that GDP in Q3 contracted at the biggest annual pace since 2001. It seems that the introduction of economic rescue measures will take some time to seep into the system, until which time the outlook for demand remains weak. Oil prices witnessed a four dollar rise on Oct. 29, clocking the the biggest gain in a month, on announcements by USA and China regarding reduction of interest rates to spur economic growth, and also because the dollar fell the most against the currencies of six major US trading partners since 1998.