Oil prices fell below US$64 a barrel, their lowest level since late March, as global demand and supply threats ease. Oil prices conventionally fall at this time of year, when gasoline consumption shrinks and winter fuels demand has yet to set in. October Brent on London's ICE Futures exchange fell to US$62.99 a barrel.
Analysts view the decline in oil prices as part of a broader slump for commodity prices at a time when central banks around the world are raising interest rates.
As it becomes more expensive to borrow money and economic growth further cools, investors are likely to shift away from assets considered risky, such as real estate, emerging-market equities and commodities.
On the supply side,
Organization of Petroleum Exporting Countries (OPEC) has decided to continue pumping crude at current levels, but would consider scaling back production if oil prices keep sinking.
Iran has pledged on Sunday to consider complying with demands to stop uranium enrichment, easing concerns of U.N. sanctions.
The U.S. Department of Energy reported that crude inventories were at the highest levels since 1998.
The International Energy Agency lowered its expectations of global oil demand growth for this year and next, citing economic weakness in Europe and parts of Asia, cutting about 100,000 bpd from its earlier growth projections for 2006.
13-Sep-06 
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